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V 


OCEAN  STEAMSHIP 
TRAFFIC  MANAGEMENT 


OCEAN   STEAMSHIP 
TRAFFIC  MANAGEMENT 


BY 


GROVER  G.  HUEBNER,  Ph.D. 

PROFESSOR    OF    TRANSPORTATION    AND 

COMMERCE   IN   THE    UNIVERSITY 

OF   PENNSYLVANIA 


D.   APPLETON   AND   COMPANY 

NEW     YORK  LONDON 

1920 


Copyright,  1920,  by 
D.  APPLETON  AND  COMPANY 


fRINTEP     N    THE    pNyTEp    STATES    OF    AMERICA 


He 


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EDITORS'  PREFACE 

■»  This  volume  upon  the  management  of  ocean  steamship  traffic 

is  the  first  of  a  series  of  manuals  designed  to  assist  young  men 
in  training  for  the  shipping  business.    The  necessity  for  such  a 
series  of  manuals  became  evident  when,  as  a  result  of  the  great 
war,  the  tonnage  of  vessels  under  the  American  Flag  was,  within 
a  brief  period,  increased  many  fold.    To  carry  on  the  war,  and 
to  meet  the  demands  of  ocean  commerce  after  the  war,  the  United 
States   Government,  through  the   Shipping   Board  and  private 
ship-yards,  brought  into  existence  a   large  mercantile  marine. 
If  these  ships  are  to  continue  in  profitable  operation  under  the 
American  Flag,  the  people  of  the  United  States  must  be  trained 
to  operate  them.    Steamship  companies,  ship-brokers  and  freight 
forwarders  must  all  be  able  to  secure  men  necessary  to  carry  on 
the  commercial  and  shipping  activities  that  make  use  of  the  ships. 
A  successful  merchant  marine  requires  ships,  men  to  man  the 
ships,  and  business  organization  to  give  employment  to  the  ves- 
sels. 
.        In  its  Bulletin  upon  "Vocational  Education  for  Foreign  Trade 
vl   and    Shipping"    (since   republished    as    "Training   for   Foreign 
^  Trade,"  Miscellaneous  Series  No.  97,  Bureau  of  Foreign  and 
^  Domestic  Commerce,  for  sale  by  the  Superintendent  of  Docu- 
"^  ments),  the  Federal  Board  for  Vocational  Education  includes 
S   among  other  courses  suggested  for  foreign  trade  training  two 
^   shipping  courses  upon  subjects  with  which  exporters  should  be 
^  familiar,    namely,    "Principles    of   Ocean   Transportation"    and 
V   "Ports   and   Terminals."     Although    such   general   courses   are 
>  jk  helpful  to  the  person  engaging  in  the  exporting  business  a  train- 
ing for  the  steamship  business  as  a  profession  requires  much 
greater  detail  in  the  knowledge  of  concrete  facts  of  a  routine 
nature.    An  analysis  was  made  of  the  various  divisions  of  the 
steamship  office  organization  and  it  was  suggested  to  the  United 
States  Shipping  Board  that  as  no  literature  existed  of  sufficient 


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vi  EDITORS'  PREFACE 

practicability  and  detail  several  manuals  should  be  writ  v : 
ing  the  principal  features  of  shore  operations. 

The  response  of  the  Shipping  Board  was  hearty.  The  Ship- 
ping Board  appointed  Mr.  Emory  R.  Johnson  of  its  staff,  then 
conducting  an  investigation  of  ocean  rates  and  terminal  charges, 
as  its  editor.  The  Federal  Board  for  Vocational  Education 
designated  Mr.  R.  S.  MacElwee,  then  engaged  in  the  prepara- 
tion of  studies  in  foreign  commerce.  Before  the  project  was 
completed  Mr.  Johnson  severed  his  connection  with  the  Shipping 
Board  in  1919,  and  January,  1919,  Mr.  MacElwee  became  Assist- 
ant Director  of  the  Bureau  of  Foreign  and  Domestic  Commerce, 
Department  of  Commerce.  The  interest  of  the  editors  in  the 
project  did  not  terminate,  however,  and  their  close  cooperation 
has  been  voluntarily  continued  out  of  conviction  that  the  works 
will  be  helpful. 

The  books  have  been  written  with  a  view  to  their  being  read 
by  individual  students  conducting  their  studies  without  guidance, 
also  with  the  expectation  that  they  will  be  used  as  class  text 
books.  Doubtless  colleges,  technical  institutes,  and  high  schools 
having  courses  in  foreign  trade,  shipping  business  and  ocean 
transportation  will  desire  to  use  these  volumes  as  class  texts 
in  a  manner  outlined  in  "Training  for  the  Steamship  Business," 
by  R.  S.  MacElwee,  Miscellaneous  Series  98,  Bureau  of  Foreign 
and  Domestic  Commerce,  Superintendent  of  Documents,  Wash- 
ington, D.  C.  It  is  expected  that  evening  classes  and  part  time 
schools,  organized  under  the  patronage  of  the  Federal  Board 
for  Vocational  Education,  Chambers  of  Commerce,  and  other 
interested  organizations  will  find  the  manuals  useful.  Should 
these  volumes  accomplish  the  desired  purpose  of  giving  the 
American  people  a  somewhat  greater  proficiency  in  the  business 
of  operating  ships,  they  will  have  proven  successful. 

The  Editors 


AUTHOR'S  PREFACE 

The  preparation  of  this  text  was  undertaken  at  the  suggestion 
of  the  editors :  Dr.  Emory  R.  Johnson,  representing  the  United 
States  Shipping  Board,  and  Dr.  R.  S.  MacElwee,  representing  the 
Federal  Board  for  Vocational  Training.  It  is  one  of  a  series  of 
manuals  "being  prepared  for  use  in  giving  instruction  in  the  va- 
rious phases  of  the  steamship  business."  In  this  volume  of  the 
series  an  effort  is  made  to  present  in  systematic  order  the  prin- 
cipal facts,  forms,  practices,  functions  and  principles  which 
young  men  engaged  in  or  contemplating  employment  in  the  ocean 
shipping  business  should  know  with  respect  to  steamship  traffic 
management. 

The  text  is  divided  intO'  three  parts.  In  Part  I,  dealing 
with  the  traffic  organization  of  ocean  shipping,  the  organization 
and  functions  of  the  various  types  of  ocean  services  and  traffic 
agencies  are  classified  and  defined.  Separate  chapters  are  in- 
cluded to  discuss  at  some  length  the  business  organization  and 
functions  of  the  Freight  and  Passenger  Traffic  Departments  of 
Steamship  lines ;  the  organization  and  administration  of  char- 
tered steamship  services  and  ship  brokers ;  the  organization 
of  ocean  conferences ;  and  the  organization  and  services  of  ocean 
freight  forwarders. 

Ocean  shipping  documents — their  contents,  form  and  uses — 
are  described  and  many  are  reproduced  for  the  convenience  of 
the  student  in  Part  II.  Separate  chapters  deal  with  the  shipping 
documents  required  by  ocean  carriers;  those  required  by  the 
United  States  Government;  those  required  by  foreign  govern- 
ments in  the  United  States  export  trade;  and  those  used  in  the 
freight  forwarding  business.  An  account  is  also  given  of  time 
and  voyage  charter  parties.  The  many  forms  reproduced  in 
these  chapters  are  made  out  for  assumed  or  actual  shipments  so 
that  the  student  may  see  how  they  are  used  in  practice. 

Part  III,  dealing  with  ocean  freight  rates  and  regulation,  con- 


viii  AUTHOR'S  PREFACE 

tains  chapters  on  ocean  freight  classifications  and  rate  tariffs; 
ocean  rate-making;  and  the  regulation  of  steamship  services  and 
rates  by  the  Government. 

I  wish  to  acknowledge  my  indebtedness  to  the  various  officials 
of  steamship  lines,  and  to  the  ship  brokers,  steamship  agents, 
freight  forwarders,  customhouse  brokers,  and  customs  authorities 
who  have  rendered  valuable  assistance  in  explaining  their  business 
organizations  and  practices  and  in  providing  and  making  out 
forms.  Acknowledgment  is  also  due  to  Dr.  R.  S.  MacElwee  for 
the  use  of  an  unpublished  "job  analysis"  of  the  organization  of  a 
steamship  line ;  and  to  Mr.  Joseph  A.  Slechta  for  the  use  of  an 
unpublished  paper  on  Practical  Steamship  Operation.  I  wish 
to  acknowledge  wnth  gratitude  the  advice  and  encouragement  re- 
ceived from  Dr.  Emory  R.  Johnson. 

The  index  was  prepared  by  Mr.  T.  P.  Harris, 

Grover  G.  Huebner 


CONTENTS 
PART  I 

THE  TRAFFIC  ORGANIZATION  OF  OCEAN  SHIPPING 

eiUPTER  PAGE 

I.  Types  of  Ocean  Services  and  Traffic  Agencies  ,  .  3 
Regular  steamship  lines — The  tramp  or  chartered  service 
— Private  or  industrial  bulk  carriers — Steamship  traffic 
agencies — Ocean  conferences  and  associations  of  steam- 
ship owners  or  shipping  interests — Government  author- 
ities and  steamship  traffic  management. 

11.    Organization  of  the  Freight  Traffic  Department  of 

A  Steamship  Line 18 

Freight  Traffic  Manager— Outbound  Freight  Traffic 
Manager — Clerical  and  soliciting  staflf  in  Outbound 
Freight  Department— Branch  offices  and  agencies — The 
Inbound  Freight  Department — Connection  of  Freight 
Traffic  Department  with  other  departments. 

III.  Organization  of  the  Passenger  Traffic  Department  of 

a  Steamship  Line 32 

Passenger  and  Assistant  Passenger  Traffic  Manager — 
The  Cabin  Department — The  Steerage  Department — Co- 
operation with  other  departments. 

IV.  Organization  and  Administration  of  Chartered  Steam- 

ship Services  and  Ship  Brokerage 44 

Types  of  chartered  services — Types  of  tramp  owners  or 
operators — Services  rendered  by  ship  brokers — Business 
organization  of  ship  broker — Ship  brokerage  charges  and 
profits. 

V.    Rate  and  Traffic  Agreements,  Pools  and  Conferences 

OF  Ocean  Carriers 56 

Conference  agreements  in  chartered  ocean  services — Prev- 
alence of  ocean  line  conferences — Organization  of  ocean 
line  conferences — Types  of  ocean  line  rate  agreements — 
Ocean  line  pools — Other  methods  of  controlling  competi- 
tion between  conference  lines — Methods  of  controlling 
competition  of  non-conference  lines — Complaints  against 
conferences — ^Advantages  of  conferences. 


X  CONTENTS 

CHAPTEK  PAW 

VI.    Ocean  Freight  Forwarding  and  Freight  Brokerage  .       71 

Nature  of  services  performed — Business  organization  of 
ocean  freight  forwarders — Freight  brokerage  and  for- 
warding charges — Competition  in  freight  forwarding 
business. 

PART  II 

OCEAN  SHIPPING  DOCUMENTS 

VII.  Shipping  Documents  Required  by  Ocean  Carriers  .  87 
Cargo  contracts  and  booking  records — Shipping  permits 
— Dock  receipts — Tally  sheets,  dock  sheets  or  returns, 
cargo  books  and  stowage  plans — Ocean  bills  of  lading — 
Through  export  bills  of  lading — Parcel  receipts — Ship's 
manifests — Documents  issued  by  carrier  when  dis- 
charging. 

VIII.    Shipping  Documents  Required  by  the  United  States 

Government 115 

General  ship's  papers — Documents  required  on  clearing  a 
vessel  in  the  foreign  trade — Documents  required  on  enter- 
ing a  vessel  in  foreign  trade. 

IX.    Shipping  Documents  Required  by  the  United  States 

Government  (Continued) 146 

Official  documents  required  of  exporters — Official  docu- 
ments required  of  importers — Customhouse  brokers  and 
shipping  documents. 

X.    Shipping  Documents  Required   by  Foreign  Govern- 
ments IN  United  States  Export  Trade  ....     160 

Consular  invoices — Certificates  of  origin — Commercial  in- 
voices— Non-dumping  or  value  certificates — Health  cer- 
tificates and  special  consular  documents. 

XI.    Shipping  Documents  Used  in  Ocean  Freight  Forward- 
ing Business 171 

Shipping  instructions — Arrival  notice,  shipping  permit 
and  customs  declaration — Lighterage  or  trucking  instruc- 
tions— Bills  of  lading — Forwarder's  waybills — Forward- 
er's expense  bill. 

XII.    Time  Charter  Parties 185 

Commercial  time  charters — Government  time  charters. 

XIII.    Trip  or  Voyage  Charters 202 

Gross  form  charter  parties — Net  form  charters — Modified 
gross  and  net  charters. 


CONTENTS  xi 

PART  III 

OCEAN  RATES  AND  REGULATION 

CHAPTER  PAGE 

XIV.    Ocean  Freight  Classifications  and  Tariffs       .     .     .     229 
Ocean    freight    classifications  —  Ocean     tariffs  —  Ocean 
rate  quotations. 

XV.    Ocean  Rate-Maeing 235 

Ocean  line  rate-making — Ocean  charter  rate-making — 
Government  rate-making. 

XVI.    Ocean  Rate-Making  {Continued) 246 

Inland  rates  to  and  from  shipside  —  Special  export  and 
import  rates — Through  rail-ocean  rates — Ocean  passen- 
ger fares. 

XVII.    Government  Regulation  OF  Ocean  Rates  and  Services    252 
Passengei  and  immigrations  laws — The  Interstate  Com- 
merce Act — -The  United  States  Shipping  Act  of  1916 — 
War  control  of  ocean  shipping. 

Index 267 


LIST  OF  CHARTS  AND  FORMS 

CHARTS 

PAGE 

I.    Typical   Organization    of  a  large    Passenger   and    Freight 

Steamship  Company 6 

II.    Business  Organization  of  a  Steamship  Line      .      .      .      .  ii 

III.  Freight  Traffic  Department  of  a  large  Steamship  Line        .  19 

IV.  Passenger  Traffic  Department  of  a  large  Steamship  Line     .  33 
V.     Typical  Business  Organization  of  a  large  Ship  Broker     .      .  52 

VI.    North  Atlantic  Freight  Conferences,   1914      .      .      (Facing)  60 

VII.    North  Atlantic  Passenger  Conferences,   1914         .      (Facing)  62 

VIII.    Tjrpical  Business  Organization  of  large  Ocean  Freight  For- 
warders          76 

FORMS 

{TUUBER  PAGE 

1  Ocean  Freight  Contract 88 

2  Daily  Booking  Sheet 89 

3  Shipping  Permit 90 

4  Permit  Sheet 92 

5  Dock  Receipt 93 

6  Dock  Sheet 95 

7  Tally  Sheet 96 

8  Stowage  Plan 97 

9  Ocean  Bill  of  Lading (Facing)  99 

10  Export  Bill  of  Lading (Facing)  104 

11  Parcel  Receipt 105 

12  Ship's  Manifest ^    .     .  107 

13  Arrival  Notice  and  Freight  Bill 109 

14  Final  Notice  of  Arrival no 

15  Delivery  Order no 

16  Delivery  Receipt ,,.,,».,,  jii 

ziii 


xiv  LIST  OF  CHARTS  AND  FORMS 

NUMBER  PAGE 

17  Bond  for  Production  of  Bill  of  Lading 112 

18  Marine  Note  of  Protest 113 

19  Master's  Extension  of  Protest 114 

20  Certificate  of  Registry 116 

21  Certificate  of  Inspection 117 

22A  Shipping  Articles 118 

22B  Back  of  Shipping  Articles 121 

23  Crew  List 121 

24  Master's  Oath  Under  Seamen's  Act 123 

25  Certificate  of  Radio  Apparatus  when  Clearing 124 

26  Oath  of  Master  of  Steam  Vessel  Clearing  without  Passengers  .  125 

27  Oath  of  Master  under  Meat  Inspection  Law 126 

28  Port  Sanitary  Statement 127 

29  Request  for  Immediate  Clearance 128 

30  Bond  to  Produce  Complete  Manifest  and  Export  Declarations  129 

31  Report  of  Entrance  and  Clearance  in  Foreign  Trade     .      .      .  130 

32  Affidavit  and  Agreement  Governing  Disposition  of  Cargo  .      .  131 

33  Application  and  License  for  Bunker  Fuel,  Stores  and  Supplies  .  132 

34  Report  of  Movement  and  Lading  of  Vessels  Clearing  Foreign 

Port 134 

35  Clearance  of  Vessel  to  a  Foreign  Port 135 

36  Oath  on  Entering  American  Vessels  from  Foreign  Port       .      .  136 

37  Oath  on  Entering  Foreign  Vessel  from  Foreign  Port      .      ,      .  137 

38  List  of  Passengers 138 

39  Radio  Declaration  when  Entering 139 

40  Preliminary  Application  to  Lade  or  Unlade  Cargo    ....  140 

41  Vessel  Bond  (term) 141 

42  General  Permit  to  Lade  or  Unlade 142 

43  Application  and  Permit  to  Allow  Unpermitted  Cargo  to  Remain 

upon  Wharf i43 

44  General  Order  to  Send  Unpermitted  Packages  from  Wharf  to 

Public  Store i44 

4SA  Shipper's  Export  Declaration 147 

45B  Back  of  Shipper's  Export  Declaration 148 

46     Export  Meat  Inspection  Certificate 149 

47A  United  States  Consular  Invoice  (Purchased  Form) .        .      .      .  152 

47B  Back  of  United  States  Consular  Invoice  (Purchased  Form)      .  153 

48A  United  States  Consular  Invoice  (Consigned  Fonn)    ....  154 

48B  Back  of  United  States  Consular  Invoice  (Consigned  Form)       .  155 

49A  Brazilian  Consular  Invoice 161 

49B   Back  of  Brazilian  Consular  Invoice 163 


LIST  OF  CHARTS  AND  FORMS  xv 

NUMBER  PAGE 

50  Argentine  Certificate  of  Origin 165 

51  Canadian  Invoice  of  Goods  Sold  by  Exporter  Prior  to  Shipment  167 

52  Canadian  Invoice  of  Goods  Shipped  on  Consignment    .      .      .  168 

53  Forwarder's  Freight  Contract 171 

54  General  Operating  Committee.    Shipping  Authority      ,      .      .  172 

55  Forwarder's  Shipping  Instructions 174 

56  Forwarder's  Lighterate  Instructions 176 

57  Forwarder's  Trucking  Instructions 177 

58A  Forwarder's  Bill  of  Lading 179 

58B  Back  of  Forwarder's  Bill  of  Lading 180 

59  Forwarder's  Waybill 182 

60  Forwarder's  Expense  Bill 183 

61 A  Time  Charter  Party  (Pre-war  Conditions) 186 

61B  Time  Charter  Party  (War  Conditions) 18? 

62  New  York  Produce  Exchange  Time  Charter  Party  .      .      ,      ,  194 

63  Government  Requisition  Charter 199 

64  General  Cargo  Gross  Form  Charter  Party 203 

65  New  York  Berth  Terms  Grain  Charter  Party  (Pre-war  Con- 

ditions)          205 

66  Gross  Form  Coal  Charter  Party  (Short  Trips  Along  Coast  and 

to  West  Indies) 206 

67  General  Cargo  Net  Form  Charter  Party 212 

68a  New  York  Net  Grain  Charter  Party  (Pre-war  Conditions)        .  213 

68b  New  York  Net  Grain  Charter  Party  (War  Conditions)        .      .  215 

69A  Nitrate  Charter  Party  (Pre-war  Conditions) 218 

69B  Nitrate  Charter  Party  (War  Conditions) 220 

70A  Welsh  Form  Coal  Charter  Party  (Pre-war  Conditions)  .      .      .  222 

70B  Reverse  of  70A     . 224 


PART  ONE 

THE  TRAFFIC  ORGANIZATION   OF 
OCEAN   SHIPPING 


CHAPTER  I 

TYPES  OF  OCEAN  SERVICES  AND  TRAFFIC  AGENCIES 

The  student  of  steamship  traffic  management,  before  making 
a  more  detailed  examination  of  the  traffic  organization  and  func- 
tions of  the  various  ocean  transportation  services  and  of  the  prin- 
cipal types  of  steamship  traffic  agencies,  should  obtain  a  bird's- 
eye  view  of  the  entire  traffic  structure  of  ocean  shipping.  A 
view  of  steamship  traffic  management  as  a  whole  will  also  assist 
him  in  mastering  the  shipping  documents  described  in  Part  II 
of  this  manual,  and  in  obtaining  a  knowledge  of  ocean  rate- 
making  and  the  regulation  and  control  of  the  steamship  business 
by  the  Government,  subjects  which  are  discussed  in  Part  III. 
The  preliminary  outline  of  the  organization  of  ocean  shipping 
contained  in  this  chapter  is  followed  with  a  more  detailed 
account  of  the  organization  and  practices  of  traffic  management. 

There  are  three  types  of  ocean  transportation  services,  which 
are  provided  respectively  by  the  regular  steamship  lines,  by 
chartered  vessels  or  tramps,  and  by  private  or  industrial  lines. 
Each  of  these  services  has  its  variations,  each  performs  definite 
functions,  and  each  is  so  organized  and  managed  as  to  make 
possible  the  attainment  of  these  functions. 

\  Regular  Steamship  Lines 

The  regular  steamship  line  service  is  the  most  generally  known 
because  it  includes  the  great  ocean  passenger  lines  and  the 
world's  largest  and  fastest  steamships,  and  because  it  is  widely 
advertised.  The  regular  line  service  is  not,  however,  performed 
exclusively  in  the  great  passenger  steamers  with  which  the  travel- 
ing public  is  familiar.  There  are  a  variety  of  different  kinds  of 
regular  steamship  lines.  The  passenger  carrying  lines  vary 
everywhere  from  those  which  carry  mainly  passengers,  mail, 
express  goods,  some  high  class  freight  and  relatively  small  quan- 
tities of  heavy  cargo  to  those  which  depend  largely  upon  freight 
cargoes  but  have  accommodations  for  a  limited  number  of  pas- 

3 


4  OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

sengers.  Steamship  lines  operating  vessels  of  great  speed  having 
relatively  little  space  for  cargo  are  sometimes  referred  to  as 
"express  lines" ;  those  which  carry  large  numbers  of  passengers 
as  well  as  much  higli  class  freight  and  bulky  cargo  are  often 
called  "passenger  lines" ;  and  those  carrying  mainly  freight  car- 
goes but  with  accommodations  for  some  passengers  are  known 
as  "combination  lines."  But  there  is  no  universally  accepted 
terminology. 

The  regular  line  service  also  includes  many  "cargo  lines" 
which  operate  over  regular  routes  and  on  scheduled  sailings,  as 
do  the  passenger  carrying  lines,  but  confine  themselves  to  freight 
traffic.  They  operate  many  of  the  world's  fastest,  largest  and 
best  equipped  general  cargo  steamers. 

The  distinctive  function  of  the  regular  lines  is  to  operate  ves- 
sels and  carry  freight  for  the  shipping  public,  or  passengers,  on 
regular  routes  and  so  far  as  possible  on  scheduled  sailings.  They 
also  perform  the  important  functions  of  providing  a  service  espe- 
cially adapted  to  the  needs  of  shippers  who  desire  to  ship  high 
class  freight  requiring  rapid  transportation  or  delivery  within 
a  specified  time,  and  of  those  who  have  less  than  shipload  lots 
of  cargo  which  do  not  warrant  the  chartering  of  an  entire  tramp 
vessel.  The  regular  freight  rates  of  the  lines  are  usually  higher 
than  the  charter  rates  of  tramps,  but  line  steamers  are  fre- 
quently put  "on  the  berth"  for  bulky  cargoes  of  grain,  case  oil 
or  similar  commodities  to  fill  up  space  not  occupied  by  general 
cargo  or  to  avoid  the  need  of  taking  on  excessive  ballast.  In 
such  instances  the  lines  may  also  afford  the  shipper  of  such 
cargoes  the  advantage  of  low  shipping  costs.  The  passenger 
carrying  lines  perform  the  additional  special  function  of  pro- 
viding a  service  adapted  to  the  transportation  of  passengers  and 
the  international  mails. 

The  traffic  conditions  favorable  to  a  regular  line  service  obvi- 
ously do  not  prevail  in  all  ocean  trades.  The  operation  of  a 
regular  line  of  vessels  over  definite  routes  and  on  scheduled 
sailings  depends  upon  the  availability  of  a  regular  flow  of  traffic 
over  the  selected  routes.  Line  steamers  do  not  need  to  sail  over 
direct  routes  connecting  a  single  clearance  port  with  a  single 
port  of  discharge;  they  may  stop  at  various  points  of  call  and 
their  routes  may  be  triangular  or  contain  a  number  of  "legs." 
They  may  also  receive  traffic  at  the  selected  ports  from  many 


OCEAN  SERVICES  AND  TRAFFIC  AGENCIES  5 

interior  points  and  from  outports,  and  similarly  discharge  traffic 
destined  to  interior  points  and  outports.  They  may  have  definite 
connections  with  branch  lines  or  other  steamship  lines  for  the 
interchange  of  traffic.  Unless  the  total  existing  or  prospective 
traffic  is  sufficiently  heavy  and  regular,  however,  conditions  are 
not  favorable  for  the  operation  of  a  regular  Une  service.  This 
regularity  and  volume  of  traffic,  moreover,  has  particular  ref- 
erence to  general  freight  cargoes,  and  in  the  case  of  passenger 
lines  to  passenger  traffic. 

The  nature  of  line  services  and  line  traffic  requires  an  exten- 
sive organization  and  facilities.  Lines  have  definite  arrange- 
ments with  respect  to  docks,  wharfs  and  warehouses,  and  other 
port  facilities;  they  solicit  and  advertise  for  traffic,  and  they 
maintain  a  permanent  main  office  and  field  organization.  Some 
lines  provide  services  in  a  number  of  different  trades  and  operate 
trunk  lines  and  branch  lines  or  feeders  in  the  same  way  that 
large  railroad  systems  do. 

Most  steamship  lines  are  operated  by  steamship  companies  or 
by  steamship  agents  who  are  engaged  in  the  business  of  operat- 
ing lines  for  themselves  or  for  line  companies.  There  are  some 
government  lines,  but  such  lines  usually  are  also  operated  through 
steamship  companies.  The  business  organization  of  a  steam- 
ship company  or  agent  depends  upon  the  volume  and  character 
of  its  traffic,  the  efforts  needed  to  obtain  traffic,  the  number 
and  kind  of  services  provided,  the  number  of  ports  of  call,  and 
the  views  of  officials  and  owners  regarding  organization.  The 
organization  of  no  line  is  strictly  typical  of  all  other  lines.  The 
organization  contained  in  Chart  No.  I  is  that  of  a  large  freight 
and  passenger  carrying  line ;  it  is  typical  of  such  lines  and  it  dis- 
closes the  main  business  departments  found  in  most  line  organi- 
zations. The  business  organization  of  each  line  within  the  va- 
rious departments  will  of  course  vary  as  stated  above.  Cargo 
lines  dispense  with  the  Passenger  Traffic  Department,  and  most 
of  the  officials  and  other  employees  of  small  lines  perform  a  wider 
range  of  duties  than  those  of  large  lines,  the  volume  of  whose 
business  warrants  a  high  degree  of  specialization.  The  Freight 
and  Passenger  Traffic  Department  contained  in  Chart  No.  I  are 
fully  described  in  subsequent  chapters.  These  departments  are 
important  parts  of  the  larger  business  organization,  all  parts  of 
which  should  cooperate  when  desirable  and  are  brought  together 


8  OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

under  the  Vice-Presidents,  President  and  Board  of  Directors.  The 
chart  indicates  the  possible  avenues  of  promotion  and  the  many 
different  kinds  of  positions  available  in  a  large  line  organization. 
It  will  be  noted  that  the  largest  department  in  the  entire  or- 
ganization is  the  Department  of  Operations,  which  has  charge  of 
all  the  various  functions  of  physical  operation  and  maintenance 
as  distinct  from  commercial  or  traffic  activities.  It  is  in  fact  a 
group  of  departments  brought  together  under  the  Manager  of 
Operations.  The  work  of  loading,  discharging,  provisioning, 
maintaining  and  running  the  line's  vessels  involves  so  much 
detail  and  responsibility  that  in  the  large  line  selected  for  analysis 
it  is  divided  among  various  subdcpartments  and  agencies,  each 
with  responsible  heads.  The  Wharf  Department  under  the  Gen- 
eral Superintendent  of  Wharves  has  complete  charge  of  the 
physical  work  of  receiving  and  delivering  traffic  at  the  line's 
docks,  wharves,  piers  and  warehouses.  Its  work  is  so  closely 
connected  with  that  of  the  traffic  departments  that  the  student 
of  traffic  management  will  do  well  to  master  the  detailed  account 
given  in  the  volume  of  this  series  on  Wharf  Management  by  Dr. 
R.  S.  MacEIwee  and  Mr.  T.  R.  Taylor.  The  Marine  or  Deck 
Department  under  the  Marine  Superintendent  sees  to  the  docking 
and  undocking  of  the  line's  vessels  and  also  includes  the  deck 
department  of  the  vessels  when  afloat.  The  officers  and  crew 
comprising  the  deck  department  of  a  ship  are  indicated  in  the 
chart.  The  Engineer  Department  under  a  Superintendent  En- 
gineer similarly  has  charge  of  the  engine  department  of  the  line's 
ships,  and  of  the  upkeep  of  their  engines  and  repairs  to  their 
hulls  in  case  they  need  to  be  put  in  dry  dock.  The  Construction 
Department,  consisting  of  a  Chief  of  Construction,  assistant  con- 
structors, draftsmen  and  a  clerical  force,  has  charge  of  the  line's 
ship  and  other  construction  work.  The  Victualing  Department, 
under  a  Victualing  Superintendent,  has  charge  of  all  the  food 
supplies  needed  aboard  a  ship,  purchasing  and  handling  them 
ashore  and  supervising  the  serving  of  them  afloat  through  the 
vessel's  chief  stewards  and  their  staff  of  assistants,  storekeepers, 
cooks,  etc.  Under  the  Manager  of  Operations  of  this  line  there 
is  also  a  Chartering  Department  wliich  handles  the  company's 
ship  chartering  transactions.  Its  organization  is  similar  to  that 
of  a  ship  broker.^ 
*  Described  in  Chapter  IV. 


OCEAN  SERVICES  AND  TRAFFIC  AGENCIES  9 

The  Manager  of  Operations,  moreover,  has  branch  offices  at  out- 
ports  in  the  United  States,  and  branch  offices  and  agencies  at 
foreign  ports  to  conduct  the  line's  operating  functions  away  from 
its  home  office. 

The  line  organization  selected  as  the  basis  for  discussion  also 
has  a  Treasurer's  Department.  The  Treasurer,  who  is  its  execu- 
tive head,  has  control  of  the  company's  financial  afifairs  within  the 
limits  set  by  the  Board  of  Directors,  and  he  signs  its  stock  certifi- 
cates and  manages  its  banking  and  foreign  exchange  relations. 
The  Assistant  Treasurer,  under  him,  has  charge  of  the  Money 
Order  and  Draft  Department  which  is  so  closely  connected  with 
the  Passenger  Traffic  Department  that  his  office  is  located  there. 
The  Cashier,  assistant  cashiers,  cashbook  keepers  and  clerks  of 
the  Treasurer's  department,  some  of  whom  are  located  in  various 
departments  throughout  the  organization,  receive  the  company's 
funds  and  keep  the  necessary  cash  records.  The  money  received 
by  the  Cashier  or  his  staff  is  turned  over  to  the  Treasurer,  who 
is  responsible  for  its  safe-keeping. 

The  Comptroller's  Department  is  divided  into  the  offices  of 
the  Comptroller  and  Assistant  Comptroller  and  three  subdepart- 
ments.  The  Comptroller  is  the  executive  head  of  the  entire  de- 
partment and  has  charge  of  disbursements  and  financial  state- 
ments. The  Assistant  Comptroller  is  responsible  for  the  making 
of  the  monthly  and  yearly  balance  sheets  and  for  the  keeping  of 
the  general  books  of  the  company.  This  necessitates  the  con- 
solidation and  posting  of  accounts  which  are  of  two  principal 
kinds :  voyage  accounts  and  general  expense.  The  accounting 
classification  is  so  elaborate  that  the  Assistant  Comptroller  of 
the  line  has  a  staflf  of  three  subdepartments, — Accounting,  Audit- 
ing and  Voucher. 

The  Chief  and  Assistant  Chief  of  the  Accounting  Department 
and  a  staff  of  bookkeepers  have  charge  of  posting  items  in  the 
ledgers  from  the  cashbooks  and  other  books  kept  in  various  parts 
of  the  line's  organization;  and  they  take  off  monthly  trial  bal- 
ances, and  prepare  statements  as  requested.  The  Auditor  has 
charge  of  checking  the  company's  funds  and  keeping  the  neces- 
sary books;  he  signs  vouchers  before  payment,  checks  bills  and 
files  them  in  his  office,  and  checks  and  files  foreign  accounts.  He 
has  a  staff  of  clerks  to  assist  in  this  v/ork,  and  as  he  is  in  charge 


10         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

of  the  passenger  manifests  covering  each  voyage  as  tbey  are 
received  from  the  Passenger  Traffic  Department  he  has  the  as- 
sistance of  a  "passenger  manifest  clerk."  The  Auditor  of  Dis- 
bursements with  a  staff,  as  shown  in  Chart  No.  I,  has  charge  of 
the  final  payment  of  all  outgoing  funds.  Vouchers  payable  at  a 
bank  are  prepared  and  sent  out  under  the  immediate  direction  of 
his  "chief  voucher  clerk."  A  "disbursement  book  clerk"  has  charge 
of  the  keeping  of  the  disbursement  books.  A  "petty  cash  ac- 
count clerk"  deals  directly  with  the  Cashier's  clerks,  who  keep  the 
petty  cash  accounts  in  iJie  Treasurer's  Department.  A  junior 
"clerk  for  the  prevention  of  duplication"  is  entrusted  with  card 
index  records  of  bills  against  which  he  checks  bills  to  avoid  the 
danger  of  having  the  same  bill  paid  more  than  once.  The  voucher 
department  also  has  a  number  of  junior  "bill  filing  clerks." 

The  business  organization  of  a  steamship  line  may  have  an 
Insurance  Department  to  handle  its  insurance  work,  particularly 
that  having  to  do  with  the  placing  of  marine  insurance  and  the 
adjustment  of  claims.  The  insuring  of  vessels  through  self-in- 
surance funds,  mutual  associations,  outside  marine  insurance 
companies  and  underwriters,  or  through  the  Bureau  of  War 
Risk  Insurance  of  the  United  States  Treasury  Department  is 
fully  described  in  the  manual  of  this  series  on  Marine  Insurance 
by  Dr.  S.  S.  Huebner, 

There  is  also  a  Secretary,  the  duties  of  whose  ofifice  are  similar 
to  those  usually  performed  by  the  secretary  of  any  large  company. 
The  line's  legal  work  may  be  in  charge  of  a  Counsel  or  it  may 
be  turned  over  to  an  outside  firm  of  attorneys.  Its  organization 
may  have  a  Chief  Clerk  with  a  general  clerical  staff,  and  a  num- 
ber of  the  higher  executive  officers  may  have  private  secretaries. 

To  emphasize  the  fact  that  the  organization  outlined  in  Chart 
No.  I  is  that  of  a  large  steamship  line  and  that  smaller  lines  have 
a  less  extensive  and  complex  organization,  attention  is  called  to 
Chart  No.  II.  This  chart  does  not  show  the  line's  entire  clerical 
staff  and  field  forces,  but  it  brings  out  the  various  departments 
of  its  main  office  organization. 

2^.„^         The  Tramp  or  Chartered  Service 

Very  differently  organized  and  less  generally  understood  is 
the  freight  service  performed  by  the  thousands  of  cargo  vessels 


OCEAN  SERVICES  AND  TRAFFIC  AGENCIES 


11 


that  operate  without  established  sailing  schedules  and  confine 
themselves  to  no  definite  routes  or  limited  group  of  ports.  They 
are  known  as  tramps  because  they  may  be  chartered  to  carry 
cargo  over  any  route  and  to  any  port  not  prevented  by  inadequate 
harbor  depths  or  legal  restrictions.  They  are  usually  chartered 
to  transport  full  cargoes  of  heavy,  bulky  commodities  and  are 


BUSINESS  ORGANIZATION  OF  A  STEAMSHIP  LINE 


Treasurer 


Chief  Clerk 


Genl. Clerical 

Stall 


Board  of  Directors 


Counsel       President     —     Secretary 


General  Manager 


Comptroller 


Traffic  Manager 


Marine  Supt. 


Insurance 
Agent 


Purchasing 
Agent 


Auditor 


Port 
Engineer 


. 

1 

Frelcht  Agent 

Passeneor 
Agent 

Permit  Clori:8 

Ticket  Olerka 

Bill  of  Lading 
Clerks 

Inward  Freight 
Clerks 

Pier 

Hnperintendent 


Accountants 


Fort  Captain 


Cashier 


Receiving 
Clerk 


Tow  Boat 
Captain 


Tallymen 


Stevedore 
Foremen 


Chart  Prepared  by  Joseph  A.SUchta~ 


Chart  II 


therefore  of  great  importance  in  the  ore,  coal,  grain,  nitrate, 
phosphate,  lumber,  clay,  building  material,  chalk,  sugar  and 
iron  and  steel  trades,  where  the  shipment  of  large  cargoes  is  the 
common  practice.  But  their  services  are  not  limited  to  these 
trades;  tramps  may  be  chartered  to  carry  cargoes  of  any  kind 
not  requiring  vessels  of  special  design  and  equipment. 

The  fundamental  document  governing  the  relations  between  the 
tramp  owner  or  operator  and  the  charterer  is  the  charter  party. 


12         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

When  chartered  for  a  single  voyage  a  trip  or  voyage  charter  is 
executed,  and  when  a  vessel  is  chartered  for  a  period  of  time  or 
a  number  of  voyages  the  underlying  contract  is  known  as  a  time 
charter.  The  numerous  variations  within  these  two  general 
classes  of  charter  parties  are  described  in  Chapters  XII  and 
XIII. 

Though  the  chartered  freight  service  usually  refers  to  the 
chartering  of  tramps  for  full  cargoes,  tramp  vessels  are  also 
used  in  other  ways.  They  are  sometimes  put  "on  the  berth"  by 
their  owners  or  operators,  either  for  full  or  partial  cargoes. 
Cargo  is  then  sought  by  personal  solicitation  or  advertising  and 
sailing  dates  and  ports  of  discharge  may  be  announced.  Many 
shippers  with  large  or  small  cargoes  may  deliver  their  shipments 
to  the  tramp  vessel  as  they  would  to  a  line,  each  paying  freight 
rates  for  his  particular  cargo  instead  of  a  charter  rate  or  hire 
covering  the  services  of  the  entire  vessel  for  a  voyage  or  period 
of  time.  A  tramp  may  be  similarly  put  on  the  berth  by  ship 
brokers  or  by  speculators  who  charter  it  on  their  own  account 
and  then  endeavor  to  find  cargoes  for  it.  When  a  tramp  is  en- 
gaged in  this  service  it  may  come  into  direct  competition  with 
the  regular  lines ;  it  then  becomes  a  speculation  which  is  usually 
not  undertaken  unless  line  rates  seem  to  be  exorbitant  or  a  short- 
age in  line  tonnage  occurs,  A  tramp  may,  however,  be  put  on  the 
berth  for  cargoes  destined  to  ports  which  are  not  as  yet  served 
by  regular  lines.  Shippers  who  charter  a  vessel  for  a  full  cargo 
and  are  required  to  pay  th^  owner  on  that  basis  sometimes  put 
the  vessel  on  the  berth  to  fill  available  space  not  occupied  by  the 
cargoes  of  the  charterers. 

Tramps  are  at  times  chartered  by  regular  lines  to  operate  in 
the  line  service.  A  line  may  need  one  or  more  additional  vessels 
during  the  season  when  its  traffic  is  heaviest ;  or  it  may  own  a 
part  of  its  fleet  and  regularly  operate  chartered  vessels  in  its  line 
service;  and  there  are  steamship  lines  with  entire  fleets  consist- 
ing of  chartered  vessels.  Cargo  vessels  are  in  this  way  with- 
drawn from  the  tramp  service  by  cargo  lines,  and  passenger 
steamers  are  sometimes  chartered  by  passenger  lines. 

As  cargo  vessels,  when  operating  as  tramps,  for  the  most  part 
carry  full  cargoes  of  heavy,  bulky  commodities  they  are  not 
always  in  direct  competition  with  the  regular  lines.  The  two  ser- 
vices, however,  are  not  wholly  non-competitive,   for  lines   fre- 


OCEAN  SERVICES  AND  TRAFFIC  AGENCIES  13 

quently  seek  heavy,  bulky  commodities  either  as  part  of  their 
regular  cargo  or  as  berth  cargo,  and  tramp  vessels  are  sometimes 
put  on  the  berth  for  the  type  of  cargo  that  is  ordinarily  carried 
by  the  lines.  Each  has  certain  competitive  advantages.  The 
capital  and  operating  costs  of  tramps  are  less  than  those  of  the 
regular  lines.  Tramp  vessels  are  built  for  economy  and  freight 
capacity;  they  are  usually  of  average  size,  speed,  and  draft,  and 
are  fitted  to  carry  large  cargoes  not  requiring  specialized  equip- 
ment. Tramp  ovi^ners  and  operators  need  not  provide  themselves 
with  or  make  permanent  arrangements  for  expensive  docks, 
wharves,  warehouses  and  other  port  facilities.  They  need  not 
expend  large  sums  on  advertising  or  maintain  permanent  domes- 
tic and  foreign  branch  offices,  district  offices  and  agents.  The 
extensive  business  organization  needed  by  lines  is  not  duplicated 
in  the  tramp  service,  for  the  tramps  depend  largely  upon  ship 
brokers  for  their  charterers  or  cargoes.  Their  office  organiza- 
tion for  planning  and  directing  operations  and  for  other  pur- 
poses, and  the  services  performed  by  ship  brokers  are  discussed 
in  Chapter  IV. 

The  tramps,  however,  are  at  a  disadvantage  in  certain 
respects  as  compared  with  the  lines  with  whom  they  sometimes 
compete.  They  are  not  adapted  to  transport  the  profitable  high 
class  freight  which  moves  in  less  than  full  cargoes  and  requires 
rapid  delivery ;  nor  do  they  share  in  the  passenger  and  mail 
business.  They  do  not  have  the  business  organization  needed  for 
the  regular  transportation,  handling  and  solicitation  of  general 
cargo  traffic  and  they  have  no  clientele  of  regular  patrons.  When 
competing  against  lines  for  grain  which  is  frequently  bid  for  by 
the  latter  as  berth  cargo,  they  face  the  disadvantage  of  having 
to  depend  entirely  upon  the  cargo  of  grain  for  the  profits  of  their 
voyage,  while  the  lines  depend  mainly  upon  their  regular  cargo 
and  passengers  which  are  largely  booked  before  their  vessels  are 
put  on  the  berth.  As  the  flow  of  traffic  over  particular  given 
routes  becomes  heavy  and  regular  the  advantages  of  the  lines 
increase,  but  the  tramps  continue  to  carry  a  large  share  of  the 
world's  ocean  freight  traffic. 

'^,  Private  or  Industrial  Bulk  Carriers 

Although  most  ocean  cargoes  are  now  carried  in  tramps  or 
line  vessels  there  is  a  tendency  on  the  part  of  various  industrial 


14         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

and  mercantile  concerns  to  provide  themselves  with  vessels 
which  they  operate  primarily  to  carry  their  own  raw  materials 
or  finished  products.  The  private  transportation  service  which 
they  obtain  corresponds  in  a  degree  to  that  rendered  during  the 
early  years  of  American  shipping  when  large  merchant  traders 
and  groups  of  smaller  merchants  and  shippers  provided  them- 
selves with  privately  owned  and  operated  vessels.  The  entire 
merchant  marine  was  operated  privately  for  many  years;  com- 
mon carriers. did  not  become  the  rule  in  ocean  traffic  until  after 
the  War  of  1812. 

The  so-called  private  or  industrial  bulk  carriers  of  to-day  are 
mainly  specialized  vessels  operated  by  large  industrial  concerns 
to  transport  commodities  such  as  ore,  coal,  lumber  and  lumber 
products,  asphalt,  and  mineral  oils.  It  is  sometimes  difficult 
even  in  these  trades  to  distinguish  this  type  of  service  from  that 
of  tramps  or  liners  because  the  privately  operated  vessels  at 
times  carry  cargoes  for  other  shippers  to  fill  available  cargo  space 
on  outbound  voyages  or  to  obtain  return  cargoes.  The  line  of 
distinction  becomes  less  clear  when  the  ocean  transportation 
services  operated  by  export  and  import  merchants  are  considered. 
The  lines  operated  by  some  of  them,  although  used  to  transport 
their  own  cargoes,  so  generally  accept  and  solicit  the  cargoes 
of  other  shippers  that  they  are  everywhere  regarded  as  perform- 
ing a  regular  line  service. 

Privately  operated  or  industrial  bulk  carriers  differ  funda- 
mentally from  tramps  and  regular  lines  in  that  they  are  primarily 
used  to  carry  the  cargoes  of  their  owners  or  operators.  "The 
advantages  accruing  to  the  private  concerns  operating  them  are 
(a)  the  use  of  speciaHzed  equipment,  (b)  the  exact  degree  of 
regularity  and  frequency  of  service  desired,  (c)  a  reduction  in 
some  instances  of  the  firm's  transportation  bill,  and  (d)  more 
complete  control  over  a  particular  industry  or  trade  in  so  far 
as  its  control  may  depend  upon  ocean  transportation  facilities."  ^ 
Ocean  steamship  services  of  this  kind  are  variously  managed  by 
the  industrial  concern  through  a  steamship  department  directly 
connected  with  its  main  business  organization;  through  a  sub- 
sidiary steamship  company;  or  through  an  outside  steamship 
agent. 

'  E.  R.  Johnson  and  G.  G.  Huebner,  Principles  of  Ocean  Transportation, 
p.  152. 


OCEAN  SERVICES  AND  TRAFFIC  AGENCIES  15 

Steamship  Traffic  Agencies 

In  the  preceding  account  of  ocean  transportation  services  fre- 
quent mention  was  made  of  agencies  which  are  intimately  as- 
sociated with  steamship  operation  and  traffic  management.  The 
owners  of  line  vessels  frequently  turn  the  management  of  their 
traffic  and  sometimes  their  entire  operation  over  to  steamship 
agents  who  may  also  undertake  the  operation  of  lines  on  their 
own  account.  There  are  "general  steamship  operators"  who  not 
only  act  as  steamship  agents  but  engage  in  many  branches  of 
steamship  activity,  line  as  well  as  tramp.  There  are  a  vast  num- 
ber of  "freight"  and  "passenger  agents"  who  work  for  steamship 
lines  under  contract  on  a  commission  basis.  There  are  "ocean 
freight  brokers,"  "forwarders,"  "contractors"  and  "foreign  ex- 
press companies";  "custom  house  brokers"  and  "customs  attor- 
neys" ;  trucking  and  lighterage  companies ;  dock,  wharf,  ware- 
house and  terminal  companies ;  "ship  brokers,"  "managing  own- 
ers" and  other  tramp  operating  concerns ;  stevedores ;  marine  in- 
surance companies  and  underwriters ;  all  of  which  are  parts  of 
the  present  day  organization  for  steamship  operation  and  traffic 
management.  Those  which  are  primarily  traffic  agencies  are  dis- 
cussed in  subsequent  chapters,  and  others  are  described  in  other 
manuals  of  this  series. 

The  railroads  are  also  a  factor  in  steamship  traffic  manage- 
ment. They  carry  ocean  cargoes  to  and  from  the  interior  on 
railroad  or  through  export  bills  of  lading,  and  at  domestic  or 
special  import  and  export  rates,  and  occasionally  at  through  or 
joint  rates.  They  provide  ocean  terminal  facilities  of  various 
kinds  at  many  ports ;  they  perform  lighterage  and  other  port 
services;  and  establish  railroad  demurrage  and  storage  rules  and 
other  traffic  regulations  of  importance  both  to  ocean  shippers  and 
carriers.  Some  of  them  have  foreign  freight  departments 
tlirough  which  import  and  export  traffic  is  developed  and  for- 
warding services  are  performed.  At  a  number  of  ocean  ports 
steamship  lines  and  railroads  are  parties  to  preferential  rail- 
ocean  traffic  contracts  which  variously  provide  that  the  steam- 
ship line's  steamers  shall  load  and  discharge  at  the  wharves 
owned  by  a  particular  railroad,  that  the  railroad  will  provide 
wharfage  facilities  free  of  charge,  and  that  the  steamship  line 
and  the  railroad  will  mutually  endeavor  to  promote  the  inter- 


16         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

change  of  their  traffic,  each  giving  preference  to  the  other  so 
far  as  it  may  lawfully  do  so.  Additional  clauses  sometimes  fix 
the  number  of  vessels  to  be  operated ;  call  for  the  protection  of 
rates  on  competitive  traffic  as  against  other  lines  or  ports,  and 
govern  other  master  of  mutual  interest.  The  closest  relation 
between  the  rail  and  ocean  transportation  services  exists  in  those 
instances  where  railroads  own  and  operate  or  directly  control 
steamship  companies  and  vessels.^ 

Mention  should  also  be  made  of  the  various  concerns  that  are 
purely  operating  agencies  as  distinct  from  those  that  are  a  part 
of  or  closely  connected  with  the  traffic  organization  of  steamship 
companies.  They  include  agencies  such  as  towing  companies, 
bunker  coal  and  fuel  oil  concerns,  pilots,  ship  supply  merchants, 
dry  dock  companies,  and  underwriters'  surveyors. 

Ocean  Conferences  and  Associations  of  Steamship  Owners 
OR  Shipping  Interests 

This  bird's-eye  view  of  steamship  traffic  management  would  not 
be  complete  without  mention  of  the  various  organizations  through 
which  individual  steamship  services  and  agencies  are  affiliated 
w^ith  each  other.  Most  steamship  lines  engaged  in  any  particu- 
lar trade  are  brought  together  in  so-called  "ocean  conferences" 
to  agree  on  many  of  the  most  important  phases  of  traffic  man- 
agement. Some  of  the  conferences  are  formal  organizations, 
while  others  consist  of  informal  working  arrangements ;  and  their 
agreements  range  from  signed  agreements  to  oral  understandings. 
They  variously  control  line  rates  and  frequently  administer 
traffic  or  money  pools ;  allot  ports,  sailing  dates,  number  of  sail- 
ings or  the  amount  of  tonnage;  regulate  the  commissions  and 
practices  of  freight  and  passenger  agents;  and  otherwise  govern 
the  relations  between  member  lines  and  their  competition  with 
non-members.  As  is  more  fully  described  in  Chapter  V  ocean 
conferences  are  also  found  in  the  chartered  service,  but  the  con- 
trol exercised  by  them  has  always  been  less  far  reaching  and 
effective.  There,  moreover,  are  steamship  associations  through 
which   owners   or   operators   endeavor   to    standardize    charter 

•  An  account  of  "Cooperation  and  Combination  of  Ocean  and  Rail 
Carriers"  is  given  in  Chapter  XX  of  the  Principles  of  Ocean  Transporta- 
tion by  E.  R,  Johnson  and  G.  G.  Huebner. 


OCEAN  SERVICES  AND  TRAFFIC  AGENCIES  17 

parties,  port  regulations,  etc.,  and  to  cooperate  in  other  matters 
of  mutual  interest. 

Many  of  the  agencies  connected  with  ocean  shipping  are  also 
affiliated  in  associations  or  special  organizations.  Many  freight 
agents,  brokers  and  forwarders  are  members  of  freight  brokers' 
associations.  Stevedores,  tally  clerks,  and  truckmen  are  usually 
members  of  unions.  The  pilots  of  a  particular  port  are  usually 
members  of  a  pilots'  association. 

At  many  ports  there  are  also  general  organizations  with  a 
membership  including  a  wide  range  of  shipping  interests.  Mari- 
time exchanges  and  the  chambers  of  commerce  and  produce  ex- 
changes located  at  some  of  the  ports  perform  important  ocean 
shipping  functions.* 

Government  Authorities  and  Steamship  Traffic  Manage- 
ment 

The  management  of  steamship  traffic  is  not  left  entirely  to 
the  individual  or  cooperative  action  of  those  engaged  in  ocean 
shipping.  The  Federal  departments,  bureaus,  boards,  commis- 
sions and  authorities  referred  to  in  Chapter  XVII  are  important 
links  in  the  general  traffic  and  operating  organization.  So  too 
are  the  local  authorities, — state,  municipal  or  public  trust, — that 
administer  the  ocean  ports ;  and  the  foreign  consuls  and  customs 
authorities  who  administer  the  consular  regulations  of  foreign 
countries  in  so  far  as  they  apply  to  the  trade  and  shipping  of 
the  United  States. 

*  See  pp.  53,  54. 


CHAPTER  II 

ORGANIZATION   OF   THE   FREIGHT   TRAFFIC   DEPARTMENT 
OF  A  STEAMSHIP  LINE 

The  business  organization  of  every  steamship  line  or  steam- 
ship agent  in  charge  of  the  management  of  a  regular  line  carry- 
ing freight  cargoes  in  the  overseas  trade  contains  a  Freight  Traf- 
fic Department  through  which  the  line's  or  steamship  agent's  com- 
mercial or  traffic  functions  are  performed.  It  has  charge  of  the 
making  of  freight  rates;  of  the  issue  and  distribution  of  tariffs 
or  rate  cards  or  instructions  as  to  what  charges  are  in  effect; 
of  the  solicitation  and  development  of  freight  traffic  and  the 
booking  of  cargoes;  the  issue  of  freight  contracts,  bills  of  lad- 
ing, parcel  receipts,  shipping  permits,  arrival  notices  and  other 
shipping  documents  described  in  subsequent  chapters;  and  of 
the  entry  and  clearance  of  vessels,  and  to  some  extent  of  car- 
goes at  the  custom  house.  It  selects  cargo  so  as  to  swell  the 
profits  of  each  voyage  so  far  as  possible,  and  considers  the  rela- 
tive space  to  be  occupied  by  cargo  and  fuel.  It  recommends  the 
establishment  of  new  or  the  alteration  of  old  services;  it  ex- 
amines into  the  traffic  suitability  of  vessels  which  the  owner  con- 
templates purchasing,  chartering  or  constructing. 

There  is  no  uniformity  among  steamship  lines  or  agents  as  to 
the  organization  of  the  freight  traffic  department,  for  the  volume 
of  business  varies  everywhere  from  that  of  the  small  lines  oper- 
ating a  few  vessels  to  that  of  the  giant  steamship  companies  or 
agents  operating  fleets  exceeding  a  million  tons  gross  register. 
There  are  steamship  consolidations  and  steamship  agents  who 
manage  a  number  of  steamship  lines  serving  many  ports  and 
operating  over  different  routes. 

The  size  of  the  freight  traffic  department  is  bound  to  be  ad- 
justed to  the  volume  of  its  business  and  the  number  of  lines 
operated,  and  the  subdivision  of  functions  among  separate  traffic 
officials  and  employees  is  adapted  to  these  considerations  and  to 
the  views  of  the  owners  or  company  directors  and  executive  of- 

i8 


FREIGHT  TRAFFIC  DEPARTMENT 


19 


ficials  as  to  how  the  necessary  work  can  best  be  performed.  The 
freight  traffic  organization  contained  in  the  accompanying  chart 
|(No.  Ill)  is  that  of  a  typical  large  steamship  line  or  steamship 


Chart  III 


FREIGHT  TRAFFIC  DEPARTMENT  OF   LARGE   STEAMSHIP  LINE 


Freight  Traffic 
Manager 


— p 

^ 


2nd  Asst.E  of  L. Clerks 


3-4  Freigh,t  Manifest 
Cleilts 


J  Junior  Permit  Clerks 


Clearance  Clerks 


Junior  Clerks 
Stenographers,  Boys 


Ifrlvate  Secretary] 


2nd  Asat.PreJBht  Traffic 

ManagBr 

In  Bound  Treight 


-j       Traffic  Specialist        I 

-c 
-c 


3  or  4  Junior  Clerks  for 
l-l     Misc. Work. Ereight 
Oalcnlatlons,  Filing,  etc, 


Head  of  Freight  Dept. 
District  Office 


3-5  Junior  Clerks 


OleTical  Staff 


Freight  Agents 
Members  of  Associ- 
ation of  Freight  Brok- 
ers with  Seat  on  Pro- 
duce Exchange 


S&oioT  aod  Junior 
Clerks'  of  ffreight      - 
Agents 


Clerical  Staff  -■ 


Freight  Offices 
Abroad 


Seaboard 
Offices  Outside  N.Y 


Clerical  Staff 


Freight  Agent 


Freight  Agent 
I      Freight  Solicitor      [~     [  Asst.  Freight  Agent 
[Bill  of  Lading  Clerk" 


Manifest  Clerks 


Permit  Clerks 


Chart  prepared  hv  Dr.  R.S.MacElwee 


agent.  When  studied  with  a  view  to  determining  who  performs 
a  particular  kind  of  traffic  work  or  the  possible  lines  of  promo- 
tion for  traffic  employees  it  should  be  borne  in  mind  that  the 
Freight  Traffic  Department  of  every  steamship  line  or  agent 


20         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

varies  in  detail  and  that  the  traffic  organization  of  a  small  line 
is  less  extensive. 

Freight  Traffic  Manager 

The  traffic  organization  of  many  large  steamship  lines  is  di- 
vided into  two  parts  v^hich  handle  freight  and  passenger  traffic 
respectively.  In  such  an  organization  there  may  be  a  Freight 
Traffic  Manager  and  also  a  Passenger  Traffic  Manager  each  with 
a  separate  department.  A  smaller  line  or  one  less  extensively 
engaged  in  the  passenger  business  is  apt  to  have  a  Traffic  Man- 
ager who  is  in  charge  of  both  freight  and  passenger  traffic  man- 
agement, the  work  under  his  supervision,  however,  being  largely 
subdivided  among  separate  traffic  officials  and  employees. 

The  Freight  Traffic  Manager  not  infrequently  ranks  as  a  Vice- 
President  because  the  department  under  his  control  is  one  of 
great  importance  to  the  successful  operation  of  a  steamship  line. 
His  department  may  be  so  large  that  to  relieve  himself  of  de- 
tailed supervision  and  to  obtain  the  expert  assistance  of  efficient 
traffic  men  it  will  be  divided  between  two  responsible  assistants, 
an  Assistant  Freight  Traffic  Manager  in  charge  of  outbound 
freight,  and  another  Assistant  Freight  Traffic  Manager  in  charge 
of  inbound  freight.  These  traffic  officials  are  sometimes  known 
as  Outbound  and  Inbound  Freight  Managers,  or  by  other  appro- 
priate titles.  Many  steamship  traffic  organizations  provide  for 
no  Assistant  Freight  Traffic  Managers  but  place  one  or  more 
General  Freight  Agents  under  the  General  Traffic  Manager  or 
General  Freight  Traffic  Manager.  The  General  Freight  Agents 
may  be  in  direct  charge  of  outbound  or  inbound  freight  or  in 
charge  of  the  freight  traffic  work  connected  with  separate  lines 
operating  over  different  routes  or  from  different  ports. 

The  making  of  freight  rates  by  the  General  Freight  Traffic 
Manager  and  the  assistants  mentioned  above  requires  many  con- 
sultations on  their  part  and  the  compilation  of  rehable  informa- 
tion as  to  commercial  needs,  active  and  potential  competition, 
steamship  costs  and  other  matters  referred  to  at  length  in  sub- 
sequent chapters  on  rate-making.  The  rates  of  most  ocean  lines, 
moreover,  are  made  in  accordance  with  agreements  and  under- 
standings, and  the  General  Freight  Traffic  Manager  or  his  assis- 
tants perform  the  responsible  work  of  negotiating  with  other 
lines  through  the  ocean  conferences  of  which  most  of  the  steam- 


FREIGHT  TRAFFIC  DEPARTMENT  21 

ship  lines  engaged  in  the  foreign  trade  are  members.  The  ac- 
tivities of  these  ocean  conferences  are  described  in  Chapter  V. 
Having  decided  upon  freight  rates  the  General  Freight  Traffic 
Manager  sees  that  the  proper  tariffs  and  current  instructions  are 
given  to  the  company's  freight  agents,  district  officers,  solicitors 
and  brokers. 

The  General  Freight  Traffic  Manager  also  determines  the 
policies  of  the  line  with  respect  to  the  development  of  its  freight 
traffic.  He  directs  and  supervises  the  freight  offices  or  agents 
of  the  line  at  the  ports  of  the  United  States,  those  in  charge  of 
district  offices,  and  those  performing  the  line's  traffic  work 
abroad. 

Should  he  decide  that  the  line's  traffic  warrants  the  running 
of  additional  steamers,  or  that  the  company's  interests  would  be 
furthered  by  establishing  services  over  routes  or  at  ports  not 
formerly  served  by  the  line,  he  makes  appropriate  recommenda- 
tions to  the  owners.  If  it  is  decided  that  an  additional  vessel 
should  be  purchased  or  constructed  his  recommendation  consti- 
tutes an  important  guide  to  the  owners  as  to  its  suitability  for 
the  trade.  A  careful  examination  is  made  of  the  "vessel's  par- 
ticulars" and  of  blue  prints  showing  its  deck  arrangement  and 
its  holds  and  cargo  handling  equipment.^ 

The  Freight  Traffic  Manager  of  a  large  line  usually  has  a 
private  secretary.  While  this  employee  does  stenographic  work, 
the  nature  of  his  position  directly  in  an  executive's  office  re- 
quires him  to  possess  discretion,  personality  and  alertness  of 
mind,  and  offers  to  him  a  promising  avenue  for  advancement. 
He  has  an  opportunity  to  learn  the  executive  end  of  the  steam- 
ship business,  and  an  insight  into  the  forces  and  considerations 
that  shape  the  general  policies  of  the  company.  He  comes  into 
personal  contact  with  the  head  of  the  Freight  Traffic  Department 
and  those  of  practically  all  other  departments  in  the  organiza- 
tion; and  with  the  board  of  directors  and  the  many  important 
business  men  who  call  at  the  Freight  Traffic  Manager's  office  for 
conference.  To  be  of  maximum  assistance  to  the  company  he 
must  have  the  ability  to  grasp  both  the  detail  and  the  general 
aspects  of  the  work  for  which  the  Freight  Traffic  Manager  is 
responsible. 

*  For  full  discussion  of  types  of  vessels  and  their  uses  see  the  manual 
of  this  series  on  Merchant  P^essels  by  Dr.  Robert  Riegel. 


22         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Outbound  Freight  Traffic  Manager 

The  official  immediately  under  the  General  Freight  Traffic 
Manager  in  charge  of  outbound  freight,  who  may  be  the  Assistant 
Freight  Traffic  Manager,  the  Outbound  Freight  Traffic  Manager, 
or  a  General  Freight  Agent,  cooperates  with  him  in  the  making 
of  rates  and  in  formulating  traffic  development  policies.  He 
also  has  immediate  charge  of  the  supervision  of  the  outbound 
traffic  organization  of  the  line.  He  directs  the  booking  of  freight, 
so  as  to  properly  balance  cargo  space  against  space  set  aside  for 
fuel,  stores  and  supplies,  with  a  view  to  obtaining  maximum  re- 
ceipts. When  cargo  is  scarce  a  line  vessel  not  infrequently  sails 
with  as  much  as  one  third  of  its  space  unoccupied,  but  when 
cargo  is  plentiful  an  effort  is  made  to  swell  its  receipts  by  the 
efficient  and  profitable  use  of  the  vessel's  carrying  capacity. 
Heavy  cargo,  which  is  carried  on  the  weight  basis,  moreover,  is 
then  balanced  against  general  cargo  which  weighs  little  but  is 
carried  on  the  basis  of  so  much  per  measurement  ton  of  40 
cubic  feet  or  per  cubic  foot.  A  given  vessel  may,  for  example, 
have  a  cubic  capacity  for  5,600  tons  of  40  cubic  feet  as  com- 
pared with  a  weight  capacity  of  6,200  tons  of  2,240  pounds. 
Careful  choice  of  cargo  may  result  in  the  booking  of  2,400  tons 
of  heavy  weight  cargo  and  4,100  tons  of  measurement  cargo, 
or  a  total  of  6,500  tons  of  profitable  cargo. 

The  booking  office,  therefore,  requires  direction,  and  a  freight 
engagement  record  must  be  kept  so  that  the  amount  of  freight 
that  has  been  booked  can  be  ascertained  at  any  time.  The  permit 
clerks  who  issue  permits  to  shippers  telling  them  when  their 
cargo  may  be  delivered  at  the  pier,  moreover,  need  to  be  given 
instructions  as  to  when  cargoes  should  be  ordered  forward. 
There  is  a  direct  connection  between  the  proper  loading  and  dis- 
charging of  cargo  by  the  Wharf  Department  and  the  efficiency 
with  which  it  is  ordered  forward  by  the  Freight  Traffic  Depart- 
ment, Piers  or  ships  should  not  be  congested  with  cargo  and 
lighters,  and  the  pier  superintendent  should  not  be  hindered  in 
stowing  cargo  "with  dispatch  and  with  due  consideration  to 
the  order  of  discharge  at  ports  of  delivery.  .  .  .  Exceptionally 
heavy  cargo,  such  as  rails  or  heavy  lifts,  should  be  stowed  either 
in  the  very  bottom  of  the  lower  holds  or  on  the  floors  of  the 
'tween  decks.    If  steel  rails  are  being  shipped  to  Rio  de  Janeiro, 


FREIGHT  TRAFFIC  DEPARTMENT  23 

for  example,  they  can  be  stowed  to  best  advantage  in  the  'tween 
deck.  'Net'  cargo,  such  as  kerosene  oil,  must  be  stowed  if 
possible  in  compartments  not  used  for  other  cargo;  all  inflam- 
mables must  be  stowed  in  holds  not  immediately  adjacent  to  the 
boiler  room.  .  .  .  Heavy  cargoes  must  not  be  stowed  in  such 
position  with  relation  to  fragile  packages  as  to  cause  danger  of 
damage  by  the  shifting  of  the  cargo  as  a  result  of  the  movements 
of  the  hull  in  the  leeway.  These  and  literally  hundreds  of  other 
details,  must  be  given  consideration  so  far  as  is  possible,  not 
only  in  stowing  but  in  ordering  the  cargo  forward  by  rail,  truck 
or  lighter."  ^ 

Letters  of  instruction  to  the  agents  at  ports  of  call  are  also 
drawn  up  by  the  head  of  the  outbound  freight  department  so  far 
as  freight  cargo  is  concerned,  for  the  approval  of  the  Freight 
Traffic  Manager.  If  the  vessel  carries  passengers  similar  in- 
structions are  prepared  by  the  Passenger  Traffic  Manager  or 
under  his  direction.  The  instructions  to  agents  not  fully  famil- 
iar with  the  line's  wishes  are  comprehensive,  but  when  the  traffic 
department  has  full  confidence  in  the  agent's  judgment  the  letter 
of  instructions  merely  calls  attention  to  the  amount  of  cargo,  the 
number  of  passengers,  and  any  matters  calling  for  special  atten- 
tion. These  instructions  are  frequently  included  in  the  cable- 
gram which  announces  the  saiHng  date.  If  any  cargo  is  left 
ashore  after  being  included  in  the  ship's  manifest  the  agent's 
attention  is  called  to  it  in  the  letter  of  instructions.  One  or  more 
copies  of  the  ship's  manifest  which  lists  the  entire  cargo  des- 
tined to  the  agent's  port,  and  copies  of  the  bills  of  lading  which 
cover  each  shipment  are  sent  with  the  agent's  instructions. 

"A  similar  letter  of  instructions  must  be  written  to  the  master, 
with  an  explicit  statement  of  all  matters  pertaining  to  the  con- 
templated voyage.  With  such  instructions  the  master  receives  a 
complete  set  of  manifests  and  bills  of  lading,  which  may  be  used 
en  route  in  conjunction  with  the  tally  sheets  (received  from  the 
Wharf  Department)  .  .  .  for  the  purpose  of  making  up  the 
ship's  cargo  books.  These  instructions  to  both  agents  and  masters 
are  usually  made  by  the  Traffic  Manager  or  under  his  super- 
vision. Separate  letters  of  instruction  may  be  written  by  the 
Marine    Superintendent    and    Purchasing   Agent,   but   generally 

*  Statement  by  Mr.  J.  A.  Slechta.  For  details  as  to  stowage  see  manual 
of  this  series  on  Wharf  Management,  by  Dr.  R.  S.  MacElwee  and  Mr. 
T.  R.  Taylor. 


24         OCEAN  STEAI^ISIIIP  TRAFFIC  MANAGEMENT 

particulars  to  be  included  iu  a  general  letter  are  given  by  these 
officials  to  traffic  officials  charged  with  this  detail  of  adminis- 
tration." » 

Clerical  and  Soliciting  Staff  in  Outbound  Freight  De- 
partment 

Chief  Bill  of  Lading  Clerk. — Under  the  Assistant  or  Outbound 
Freight  Traffic  Manager  there  is  a  chief  bill  of  lading  clerk  who 
signs  the  steamship  company's  bills  of  lading.  He  holds  the  most 
important  place  in  his  clerical  staff,  for  the  bill  of  lading,  which 
is  more  fully  described  in  Chapter  VII,  is  the  principal  shipping 
document  in  the  business  of  ocean  line  transportation.  It  not 
only  is  the  final  receipt  to  the  shipper,  but  it  is  the  official  ship- 
ping contract;  it  gives  title  to  cargo  covered  by  it,  and  when 
made  out  to  the  order  of  the  shipper  is  a  negotiable  instrument 
which  is  frequently  used  by  the  shipper  in  financing  his  export 
transaction  by  means  of  drafts  or  international  bills  of  exchange. 

The  chief  bill  of  lading  clerk  obtains  authority  to  sign  bills 
of  lading  direct  from  the  Board  of  Directors,  for  their  validity 
depends  upon  signature  by  one  who  has  been  authorized  to  sign 
for  the  company.  To  guard  against  fraudulent  bills  of  lading 
the  signature  of  the  chief  bill  of  lading  clerk  is  kept  on  file  at 
the  offices  of  the  company's  agents  in  the  United  States  and 
abroad. 

Assistant  Bill  of  Lading  Clerks. — In  the  business  organiza- 
tion of  a  large  steamship  line  or  steamship  agent  there  are 
usually  two  or  three  assistant  bill  of  lading  clerks  who  prepare 
the  bills  of  lading  for  signature.  They  check  them  against  the 
dock  sheets  obtained  from  the  Wharf  Department  and  the  dock 
receipts  which  the  shipper  is  asked  to  return  when  he  presents 
the  bills  of  lading  for  signature.  They  verify  the  calculations 
contained  in  the  bills  of  lading;  they  compare  rates  with  the 
tariffs  or  rate  tables  with  which  they  are  provided;  and  they  in- 
sert special  clauses  into  the  contract  in  case  notations  are  found 
on  the  dock  sheets  or  dock  receipts  or  other  circumstances  make 
it  necessary.  They  need  to  have  knowledge  of  ocean  freight 
rates,  of  the  clauses  contained  in  the  company's  bills  of  lading 
and  of  the  consular  requirements  regarding  bills  of  lading  en- 
forced by  the  foreign  countries  to  which  the  line  operates. 

^  Statement  by  Mr.  J.  A.  Slechta. 


FREIGHT  TRAFFIC  DEPARTMENT  25 

Manifest  Clerks. — The  preparation  of  the  ship's  manifests, 
which  contain  an  accurate  list  of  the  vessel's  entire  cargo,  usually 
requires  the  services  of  three  or  four  manifest  clerks.  Their 
work  is  of  a  responsible  character  for  the  ship's  manifest  is  not 
only  an  important  operating,  clearance,  entry  and  accounting 
document,  but  its  preparation  is  required,  and  its  form  and  con- 
tent is  regulated  by  the  Government  of  the  United  States  and 
foreign  countries.^ 

Speed  and  accuracy  are  essential  in  the  work  of  manifest 
clerks.  They  do  not  begin  their  work  for  a  given  steamer  until 
its  loading  is  far  advanced  for  they  need  to  wait  until  a  consider- 
able number  of  bills  of  lading  for  a  particular  port  are  ready 
for  delivery  to  the  shipper.  Nevertheless  the  completion  of  their 
manifests  may  not  be  delayed  because  they  are  required  in  clear- 
ing the  vessel  at  the  custom  house.  The  United  States  Govern- 
ment requires  that  "a  complete  manifest  be  filed  on  the  next  day 
after  the  clearance  of  the  vessel."  Accuracy  is  essential  because 
consular  regulations  penalize  inaccuracies  and  in  many  instances 
prohibit  erasures  or  corrections.  With  copies  of  the  bills  of 
lading  and  exporters'  declarations  before  them,  the  manifest 
clerks  work  with  dispatch  and  accuracy.  They  are  in  many  in- 
stances provided  with  special  billing  typewriters  that  readily 
take  the  large  f®rms  on  which  ships'  manifests  are  prepared  and 
enable  them  to  prepare  the  necessary  number  of  copies  at  one 
writing. 

Permit  Clerks. — The  shipping  permits  referred  to  above  and 
more  fully  described  in  Chapter  VII  are  issued  by  permit  clerks 
under  the  direction  of  the  head  of  the  Outbound  Freight  De- 
partment. They  are  junior  clerks  of  the  department  and  in  the 
organization  of  a  large  line  or  steamship  agent  there  may  be 
one  or  two  for  each  service.  They  prepare  the  permits  on  the 
standardized  forms  of  the  company  and  carry  them  through  to 
the  shipper  or  his  forwarding  agent. 

Clearance  Clerks. — The  work  of  carrying  through  and  pre- 
paring the  documents  needed  in  clearing  vessels  at  the  custom 
house  is  usually  performed  by  manifest  or  junior  bill  of  lad- 
ing clerks.  Some  lines,  however,  have  special  clearance  clerks 
for  this  work  and  the  actual  clearance  of  the  vessel  at  the  custom 
house  is  frequently  handled  through  a  custom  house  broker  with 

*Uses  and  contents  of  ship's  manifest  are  described  in  Chapter  VII. 


26         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

whom  the  Hne  has  a  standing  arrangement  for  vessel  entry  as 
well  as  clearance.  The  required  documents  and  formalities  inci- 
dent to  clearance  are  discussed  in  Chapter  VIII,  which  deals 
with  shipping  documents  required  by  the  United  States  Govern- 
ment. 

Other  Clerks  and  Oifice  Employees. — During  the  war  the  Out- 
bound Freight  Department  of  large  lines  had  license  number 
clerks,  for  the  shippers  of  most  commodities  were  required  to 
obtain  export  licenses,  in  some  instances  from  the  United  States 
War  Trade  Board  or  its  branch  offices  and  in  others  from  the 
Customs  Collector,  and  the  steamship  lines  were  not  permitted 
to  clear  vessels  with  cargo  not  covered  by  the  required  license. 
The  department  also  has  a  number  of  junior  clerks  for  general 
office  clerical  work,  and  the  necessary  number  of  stenographers 
and  office  hoys. 

Traveling  Freight  Agents. — Directly  connected  with  the  Out- 
bound Freight  Department  there  usually  are  a  number  of  travel- 
ing freight  agents  who  are  its  salesmen  or  freight  solicitors. 

Branch  Offices  and  Agencies 

Every  cargo-carrying  steamship  line  maintains  freight  agencies 
or  branch  offices  which  are  of  the  greatest  importance  in  the 
development  of  its  traffic  and  the  handling  of  its  freight  business. 
They  are  in  many  instances  directly  responsible  to  the  Freight 
Traffic  Manager  because  they  are  concerned  with  inbound  as 
well  as  outbound  traffic,  but  most  of  their  dealings  are  with  the 
Outbound  Freight  Department, 

Branch  Seaboard  Offices. — Besides  the  main  traffic  office  lo- 
cated at  the  port  at  which  the  principal  freight  services  of  a 
line  are  performed,  branch  offices  may  be  maintained  at  other 
ports  in  the  United  States.  If  the  volume  of  business  is  small 
there  is  less  separation  of  functions  among  different  groups  of 
clerks  than  at  the  main  office  of  the  Outbound  Freight  Depart- 
ment, several  functions  being  consolidated  under  one  person. 
Large  branch  offices,  however,  have  freight  agents  and  assistant 
freight  agents,  chief  bill  of  lading  clerks  and  assistant  or  junior 
bill  of  lading  clerks,  manifest  and  permit  clerks  with  duties  simi- 
lar to  those  of  the  corresponding  agents  and  clerks  in  the  main 
outbound  freight  office. 


FREIGHT  TRAFFIC  DEPARTMENT  27 

Freight  Department  District  Offices. — In  the  district  offices 
maintained  by  steamship  lines  at  the  larger  interior  cities  there 
is  in  each  case  a  freight  department.  The  head  of  the  freight 
department  of  a  district  office  has  a  staff  of  senior  and  junior 
clerks  for  the  solicitation  and  booking  of  freight  and  the  bill- 
ing of  cargoes  to  the  vessel  and  to  foreign  destinations. 

Freight  Agents. — Steamship  lines  usually  do  not  depend  en- 
tirely upon  their  traveling  freight  agents,  solicitors,  port  freight 
agents  and  district  freight  agents  for  the  solicitation  of  freight. 
Much  of  their  freight  is  obtained  through  freight  agents  who 
work  on  a  commission  basis  and  are  bound  by  contract.  Such  an 
agent  maintains  his  own  staff  of  bill  of  lading  and  other  clerks 
and  stenographers,  the  size  of  his  staff  depending  upon  the 
volume  of  business  transacted.  There  are  many  freight  agents 
of  this  kind  at  interior  shipping  points  and  the  ports.  They  act 
as  freight  brokers  for  the  lines  with  which  they  have  connections, 
and  obtain  their  commission  from  the  lines  because  they  secure 
freight  for  them.  Yet  they  also  serve  the  shipper  in  that  they 
engage  cargo  space  for  him,  issue  bills  of  lading,  and  keep  him 
informed  as  to  freight  rates  and  steamship  service.  They  are 
usually  members  of  approved  freight  brokers'  associations,  and 
many  of  them  are  members  of  the  New  York  Produce  Exchange. 

Much  freight  is  obtained  through  ocean  freight  forwarders, 
who  act  not  only  as  freight  brokers  but  as  agents  for  shippers 
in  the  actual  shipping  or  forwarding  of  cargoes.  The  business 
of  freight  brokerage  and  forwarding  is  so  important  in  ocean 
shipping  that  a  more  detailed  account  is  given  in  a  subsequent 
chapter." 

Freight  Offices  Abroad. — As  steamship  lines  need  representa- 
tion at  foreign  ports,  some  of  them  maintain  foreign  branch  of- 
fices in  which  there  are  freight  departments.  A  freight  traffic  office 
similar  to  that  of  the  home  office,  but  on  a  smaller  scale,  per- 
forms the  usual  traffic  functions  under  the  supervision  of  the 
branch  office  manager.  In  many  instances,  however,  arrange- 
ments are  made  with  foreign  agencies  which  are  not  directly 
a  part  of  the  line's  own  organization,  although  they  may  be  so 
closely  connected  with  the  line  as  to  virtually  become  branch 
offices.  These  foreign  agencies  maintain  their  own  traffic  organi- 
zation. They  have  the  usual  clerical  staff  and  appoint  freight 
^  Chapter  VI. 


28         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

agents  and  solicitors  throughout  the  territory  in  which  they  do 
business.  Since  these  agencies  are  separate  from  the  line's  own 
traffic  organization  there  is  little  interchange  of  personnel  be- 
tween them  and  the  line's  home  offices.  It  has,  in  fact,  been  the 
custom  even  at  actual  foreign  branch  offices  and  at  the  district 
offices  maintained  in  the  United  States  to  develop  a  local  staff 
and  to  promote  clerks  and  agents  within  the  offices  rather  than 
to  interchange  personnel  with  the  home  office.  It  is  the  excep- 
tion rather  than  the  rule  to  place  a  man  direct  from  the  home 
office  at  the  head  of  a  branch  or  district  office,  because  effective 
freight  solicitation  depends  largely  upon  an  intimate  knowledge 
of  local  business  conditions  and  acquaintance  with  shippers. 

The  Inbound  Freight  Department 

The  Inbound  Freight  Department  has  charge  of  traffic  work 
connected  with  the  entry  of  inbound  vessels  and  the  delivery  of 
imported  cargoes,  and  with  the  development  of  return  freight. 
The  head  of  the  department  in  a  large  line  may  be  an  Assistant 
Freight  Traffic  Manager,  an  Inbound  Freight  Traffic  Manager 
or  a  General  Freight  Agent.  In  a  smaller  organization  than  that 
shown  in  the  accompanying  chart  there  may  be  no  distinct 
Inbound  Freight  Department,  the  traffic  work  incident  to  arriv- 
ing vessels  and  cargoes  being  handled  by  a  group  of  inbound 
freight  clerks  under  the  supervision  of  the  same  official  who 
is  responsible  for  outbound  traffic  work,  and  the  development 
of  return  freight  being  handled  by  the  same  agents  or  solici- 
tors who  solicit  outbound  freight. 

The  Inbound  Freight  Department,  even  in  case  of  a  large 
steamship  line,  is  usually  smaller  than  the  Outbound  Freight 
Department,  because  most  of  the  solicitation  of  inbound  freight 
is  done  abroad  by  the  freight  branch  offices  or  agencies  men- 
tioned above.  They  also  handle  the  booking  of  return  cargoes, 
the  issuing  of  shipping  permits,  bills  of  lading,  and  ship's  mani- 
fests, and  the  preparation  of  clearance  papers  at  the  foreign 
ports,  while  the  corresponding  work  in  the  case  of  outbound 
freight  is  performed  by  the  Outbound  Freight  Department  in 
the  United  States. 

The  Inbound  Freight  Traffic  Manager  of  a  large  line  may, 
however,  have  under  his  direction  a  number  of  inbound  freight 


FREIGHT  TRAFFIC  DEPARTMENT  29 

solicitors  who  endeavor  to  obtain  freight  from  abroad.  The 
routing  of  imports  to  the  United  States  is  not  always  left  to  the 
foreign  exporter;  the  importer  located  in  the  United  States  may 
prefer  one  available  line  to  another  and  may  be  in  a  position 
to  give  effect  to  his  preference  or  at  least  make  known  his  wishes 
to  the  foreign  shipper. 

The  inbound  freight  clerks  under  the  direction  of  the  Inbound 
Freight  Traffic  Manager  or  other  official  acting  in  that  capacity 
usually  include  several  tariff  specialists  or  senior  clerks  and 
several  junior  clerks  whose  duties  are  mainly  with  the  custom 
house.  They  are  concerned  with  the  preparation  of  the  vessel 
entry  papers  described  in  Chapter  VIII  and  they  see  that  the 
master  with  the  ship's  manifest,  copies  of  consular  invoices,  the 
crew  list,  consular  bill  of  health,  etc.,  enters  his  vessel  at  the 
custom  house.^  As  in  the  case  of  outbound  clearance,  however, 
the  actual  entry  of  the  vessel  at  the  custom  house  may  be  left 
to  the  master  of  the  vessel  and  a  licensed  custom  house  broker 
engaged  for  this  purpose  by  the  company.  Although  the  im- 
porters or  their  agents  are  responsible  for  the  entry  of  their 
imported  cargoes  at  the  custom  house,  custom  house  brokers  gen- 
erally being  engaged  by  them  for  this  highly  technical  work, 
the  Inbound  Freight  Department  of  a  steamship  line  sends  a 
notice  of  arrival  to  the  consignee  so  that  he  may  know  when  to 
settle  with  the  steamship  company  as  well  as  with  the  custom 
house.  It  also  notifies  the  custom  house  of  the  date  on  which 
it  is  desired  that  "general  order"  shall  expire.  After  this  date 
cargo  for  which  the  customs  authorities  have  not  issued  permits 
to  the  consignee  may  be  removed  from  the  vessel  or  pier  only  on 
their  order  and  by  bonded  truckmen,  who  take  them  to  the  gen- 
eral order  stores  of  the  custom  house.  Inbound  cargoes,  more- 
over, may  be  intended  for  transportation  to  interior  points  in 
the  United  States,  for  storage  in  bonded  warehouses,  or  for 
transshipment  to  other  steamship  lines  for  reexportation,  and 
the  necessary  arrangements  with  the  custom  house  need  to  be 
made  by  the  clerks  of  the  Inbound  Freight  Department  or  by 
custom  house  brokers. 

The  Inbound  Freight  Department  also  receives  the  original 
negotiable  copy  of  the  bill  of  lading  or  a  bond  vouching  for 
its  production.     Several  junior  clerks  are  engaged  in  making 

*  Ship's  papers  and  entry  documents  are  described  in  Chapter  VIII. 


30         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

freight  calculations  and  after  the  consignee  or  his  agent  has 
paid  the  amounts  due  to  the  company's  Cashier  his  cargo  will 
be  released  to  him  by  the  company,  provided  he  has  received 
the  necessary  permit  from  the  customs  authorities.  The  Inbound 
Freight  Department  first  sends  a  notice  of  arrival  and  freight 
bill  and  makes  entry  in  a  book  of  record.  After  the  cargo  is 
ready  for  delivery  to  him  it  sends  a  final  notice  of  arrival,  and 
after  he  has  settled  any  amounts  that  have  not  been  prepaid  it 
sends  a  delivery  order  w^hich  he  presents  to  the  Wharf  Depart- 
ment. If  all  freight  has  been  prepaid,  however,  the  delivery 
order  may  be  sent  with  the  arrival  notice,  or  as  soon  as  the 
original  bill  of  lading  is  surrendered  by  the  consignee.  Copies 
of  these  delivery  documents  which  are  issued  in  the  Inbound 
Freight  Department  are  reproduced  and  described  in  Chapter 
VII. 

Junior  clerks  are  also  employed  for  filing  and  general  office 
work,  and  the  department  has  a  stenographic  staff. 

Connection  of  Freight  Traffic  Department  with  Other 

Departments 

In  performing  its  functions  the  Freight  Traffic  Department 
comes  into  frequent  contact  with  other  departments  in  the  com- 
pany's business  organization.  The  Cashier's  office,  which  is  part 
of  the  Treasurer's  Department,  verifies  the  freight  calculations, 
initials  the  outbound  bills  of  lading  received  from  the  bill  of 
lading  clerks  and  holds  the  bills  of  lading  until  he  receives  from 
the  shipper  or  his  agent  the  amounts  that  are  to  be  prepaid.  The 
Cashier  also  receives  from  the  Inbound  Freight  Department  the 
bills  of  lading  delivered  by  the  consignees  and  holds  them  until 
the  amounts  to  be  collected  are  paid.  Assistant  cashiers  and 
cash  book  keepers  responsible  to  the  Cashier  are  usually  located 
both  in  the  Freight  and  Passenger  Traffic  Departments.  The 
funds  received  by  the  Cashier  and  originating  in  the  Freight 
Traffic  Department,  moreover,  are  audited  under  the  supervision 
of  the  company's  Auditor,  whose  office  is  part  of  the  Account- 
ing or  Comptroller's  Department. 

Almost  continual  cooperation  is  required  with  the  Wharf 
Department,  which  receives  and  delivers  cargoes  and  has  charge 
of  loading  and  discharging.    The  Outbound  Freight  Department 


FREIGHT  TRAFFIC  DEPARTMENT  31 

receives  dock  sheets  and  stowage  plans  from  it  and  sends  to  it 
copies  of  the  shipping  permits  issued  to  shippers  by  the  permit 
clerks.  The  dock  receipts,  moreover,  which  are  frequently, 
although  not  always,  returned  to  the  bill  -of  lading  clerks  by  the 
shippers,  are  issued  by  the  Wharf  Department  and  its  receiving 
clerks  may  make  important  notations  on  them.  The  delivery 
orders  issued  by  the  Inbound  Freight  Department  to  consignees 
and  presented  by  them  or  their  agents  at  the  piers  are,  with 
the  permits  obtained  from  the  customs  authorities,  the  basis  on 
which  the  Wharf  Department  releases  inbound  freight. 

When  a  close  decision  is  made  regarding  the  relative  spaces 
in  a  vessel  for  cargo  or  fuel,  cooperation  with  the  Superintendent 
Engineer  becomes  necessary.  When  the  suitability  of  a  vessel 
for  a  trade  is  under  consideration  the  Freight  Traffic  Depart- 
ment cooperates  with  the  Marine  Superintendent,  and  if  it 
carries  passengers  as  well  as  freight  cargoes,  also  with  the 
Passenger  Traffic  Department.  When  a  vessel  is  chartered  for 
the  use  of  the  line,  conferences  are  held  with  the  Chartering 
Department  Manager,  in  case  the  company's  organization  con- 
tains such  a  department.  Similarly,  conferences  are  had  with 
the  Passenger  Traffic  Manager  and  with  the  Manager  of  Opera- 
tions when  the  desirability  of  recommending  an  extension  or 
change  in  the  company's  steamship  services  is  under  consideration. 


CHAPTER  III 

ORGANIZATION  OF  THE  PASSENGER  TRAFFIC  DEPARTMENT 
OF  A  STEAMSHIP  LINE 

Many  of  the  regular  steamship  lines  engaged  in  the  overseas 
trade  carry  passengers  as  well  as  freight  cargoes,  although  the 
majority  of  the  passenger-carrying  lines  depend  upon  freight 
as  their  principal  source  of  revenue.  The  volume  of  passenger 
traffic  on  the  routes  to  the  Far  East,  to  Australasia,  to  South 
and  Central  America,  to  the  West  Indies,  and  to  Africa  has  not 
been  sufficiently  heavy  to  warrant  the  regular  operation  of  ves- 
sels designed  primarily  for  passenger  accommodations.  The 
relative  extent  to  which  passenger  liners  on  these  routes  carry 
passengers  and  freight  depends  directly  upon  the  total  volume 
of  traffic  available. 

In  1914,  just  before  the  full  effect  of  the  war  in  Europe  was 
felt,  1,002,602  ocean  passengers  were  reported  as  departing  from 
the  seaports  of  the  United  States  and  1,689,667  as  arriving,  mak- 
ing a  total  of  2,692,269.  Of  this  passenger  traffic  61.3  per  cent, 
was  centered  at  the  North  Atlantic  ports,  and  normally  they 
handle  over  90  per  cent,  of  the  total.  Their  share  in  1912  was 
95  per  cent,  and  in  1913,  96  per  cent.  The  bulk  of  this  heavy 
passenger  traffic  has  normally  moved  over  the  North  Atlantic 
steamship  routes  between  the  North  Atlantic  ports  of  the  United 
States  and  the  ports  of  Great  Britain  and  the  Western  and 
Southern  European  countries. 

It  was  because  of  this  concentration  of  the  passenger  traffic 
that  it  was  possible  to  operate  the  world's  greatest  passenger 
liners  on  the  North  Atlantic  routes.  Their  passenger  traffic  was 
sufficiently  heavy  to  warrant  the  operation  of  steamers  of  un- 
usual size,  speed,  costliness,  excellence  of  equipment,  and  extent 
of  passenger  accommodations.  To  many  of  these  lines  the  pas- 
senger traffic  has  been  of  vast  importance,  and  has  resulted  in 
the  organization  of  extensive  Passenger  Traffic  Departments. 

32 


PASSENGER  TRAFFIC  DEPARTMENT 


33 


The  organization  shown  in  the  accompanying  chart  (No.  IV) 
is  that  of  a  typical  large  North  Atlantic  passenger  line.  The 
Passenger  Traffic  Department  of  a  line  carrying  a  smaller  vol- 
ume of  passenger  traffic  is  necessarily  less  extensive.  It  performs 
all  of  the  functions  of  the  larger  organization  but  subdivides 

Chart    IV 


PASSENGER  TRAFFIC  DEPARTMENT  OF   A  LARGE   STEAMSHIP  LINE 

[Passenger  Traffic  Manager  J 


Oabln  Dept. 


I    Private  Secretary     | 


Asst.  Passenger 
TrafiSc  Manager 


I    Private  Secretary   | 


Main  Office 
' — I  Booking  Clerks  | 

— I  Landing  Clerks  | 


— I  Railroad  Booking  Clerks  |  |    Afloat  Pursers     | 

— I  Tourist  Department  | 


I     Steerage  Department    j 


I    Booking  Clerks      f 


I    Landing  Clerks      \- 


j  Publicity  Department 


Bailroad  Booking 
Clerks 


— I  Supply  Department  [- 


Junior  Clerks, 

Stenographers,  etc. 


Junior  Clerks, 
Stenographers,  etc. 


them  less  minutely   among  separate  passenger  traffic   officials, 
agents  and  department  employees. 


Passenger  and  Assistant  Passenger  Traffic  Manager 

The  head  of  the  Passenger  Traffic  Department  of  a  large  line 
is  the  Passenger  Traffic  Manager,  who  generally  supervises  the 
entire   department,   administers   certain   parts   of   it  specifically, 


34         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

decides  on  the  general  policies  to  be  pursued,  and  performs  a 
number  of  definite  traffic  functions.  Among  the  latter  is  the 
making  of  passenger  fares.  Those  in  the  cabin  service  are 
usually  directly  under  his  charge.  Since  on  the  North  Atlantic 
routes  the  minimum  cabin  fares  are  made  by  the  various  lines 
in  agreement,  he  performs  the  important  work  of  attending  con- 
ference committee  meetings.  To  represent  his  line  efficiently  it  is 
necessary  that  he  have  at  his  command  accurate  information  as 
to  volume  of  traffic,  receipts  and  expenses,  competitive  influences, 
and  traffic  needs  and  limitations.  He  needs  to  confer  with  the 
heads  of  other  departments  and  with  the  agents  and  staff  who 
handle  the  details  of  passenger  traffic  or  come  into  contact  with 
the  traveling  public.  The  cabin  fares  agreed  upon  have  usually 
been  minimum  fares,  the  actual  fare  when  above  this  minimum 
being  determined  by  him  in  the  interest  of  his  company  subject 
to  such  requirements  as  may  be  imposed  in  the  conference 
agreements. 

In  making  steerage  fares  the  Passenger  Traffic  Manager  has 
the  immediate  assistance  of  the  Assistant  Passenger  Traffic 
Manager  who  is  usually  in  charge  of  the  steerage  or  third  class 
passenger  service.  In  the  North  Atlantic  trade  these  fares  are 
also  made  in  agreement  with  the  various  conference  lines.  The 
steerage  traffic  of  the  trans-Atlantic  lines  has,  moreover,  been 
pooled,  and  the  Passenger  Traffic  and  Assistant  Traffic  Managers 
are  responsible  for  the  important  work  of  representing  their 
company  when  the  traffic  percentages  assigned  to  the  various 
conference  lines  are  being  determined;  and  for  the  enforcement 
of  the  administrative  requirements  imposed  in  the  pooling  agree- 
ments. Highly  important  matters  concerning  the  manner  of  sail- 
ings, the  extension  of  passenger  services,  the  allotment  of  ports, 
the  regulation  of  passenger  agents,  etc.,  are  also  agreed  upon 
in  these  conference  committees.^  Passenger  agreements  are  less 
common  on  other  ocean  routes,  where  the  freight  traffic  is  of 
dominant  importance,  but  freight  agreements  frequently  contain 
provisions  regarding  the  allotment  of  sailings,  ports  or  tonnage 
which  concern  the  Passenger  Traffic  Department  and  necessitate 
cooperation  with  the  Freight  Traffic  Manager. 

The  Passenger  Traffic  Manager  and  his  Assistant  are  also  con- 
cerned with  the  classification  of  passenger  services.     Classifica- 

*  Ocean  Conferences  are  more  fully  discussed  in  Chapter  V. 


PASSENGER  TRAFFIC  DEPARTMENT  35 

tion  has  for  the  most  part  been  standardized  into  three  classes 
— the  first  and  second  or  cabin  classes,  and  steerage.  Some  of 
the  trans-Atlantic  lines  have,  however,  subdivided  the  steerage 
service  into  tv^^o  classes,  one  of  which  is  for  immigrants  and  the 
other  for  steerage  passengers  who  are  not  immigrants ;  and 
first  and  second  class  passengers  are  in  some  vessels  combined 
into  one  class  known  as  "cabin"  passengers. 

As  in  case  of  the  Freight  Traffic  Department,  the  heads  of  the 
Passenger  Traffic  Department  consider  the  desirability  of  ex- 
tending or  altering  the  company's  services,  and  make  recom- 
mendations to  the  owners.  When  additional  passenger  vessels 
are  purchased,  constructed  or  chartered  they  examine  into  their 
suitability  for  the  trade.  They  formulate  the  policy  of  the  com- 
pany with  respect  to  the  development  of  its  passenger  traffic  by 
advertising,  solicitation,  tourist  departments  or  agencies,  and 
the  increased  speed,  comfort  and  safety  of  its  vessels.  They  de- 
termine the  form  of  passenger  tickets  and  see  that  the  tickets, 
ship  accommodation  plans,  and  the  necessary  information  rela- 
tive to  fares,  services  and  sailings  are  placed  into  the  hands  of 
the  company's  booking  clerks,  branch  offices  and  agents.  At 
some  ports  special  arrangements  have  been  made  with  the  rail- 
roads for  the  transportation  of  steamship  passengers,  particu- 
larly of  steerage  passengers,  to  inland  destinations. 

For  purposes  of  detailed  administration  the  Passenger  Traffic 
Department  of  a  large  line  is  divided  into  a  Cabin  Department 
and  a  Steerage  Department,  the  former  being  directly  under 
the  Passenger  Traffic  Manager  and  the  latter  under  the  Assist- 
ant Passenger  Traffic  Manager. 

The  Cabin  Department 

In  the  Cabin  Department  there  are  three  principal  subdivisions, 
the  main  office,  the  branch  offices,  and  the  agents. 

Main  Office  Booking  Clerks. — In  the  main  office  under  the 
Passenger  Traffic  Manager  are  the  company's  booking  clerks 
who  book  passengers  in  the  cabin  classes.  A  senior  or  chief 
hooking  clerk  is  in  charge  of  this  work;  or  if  the  company 
(  perates  several  distinct  services  to  different  parts  of  the  world 
v^rre  will  be  a  chief  booking  clerk  for  each  service.  In  the 
V.  /-!ji  services  these  chief  booking  clerks  and  the  junior  booking 


36         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

clerks  under  them  need  to  be  men  who  have  at  their  command 
much  information  about  the  countries  to  which  their  Hne  oper- 
ates and  about  the  countries  which  can  readily  be  reached  by 
travelers  from  the  foreign  ports  at  which  they  will  arrive.  They 
are  continually  called  upon  to  answer  questions  concerning  for- 
eign points  of  interest  to  travelers ;  foreign  hotel  accommoda- 
tions ;  foreign  rail  and  steamship  connections,  and  the  like.  They 
must  possess  general  refinement  because  they  come  into  con- 
tact with  the  class  of  public  which  travels  as  cabin  passengers. 
They  must  be  able  to  use  and  understand  the  languages  com- 
monly used  in  the  services  to  which  they  are  detailed  because 
they  come  into  contact  with  many  non-English  speaking  for- 
eigners. Junior  booking  clerks  are  in  many  instances  employed 
because  of  their  knowledge  of  foreign  languages  or  some  special 
fitness  or  qualification  possessed  by  them.  Booking  clerks  are 
at  times  sent  out  to  travel  over  the  routes  for  which  they  book 
passengers  so  as  to  become  personally  acquainted  with  the  con- 
ditions encountered  by  travelers. 

The  clerks  in  the  booking  department  at  the  main  office  must 
possess  the  qualifications  of  salesmen  for  they  personally  meet 
many  travelers  who  engage  their  accommodations  directly 
through  them.  They  also  handle  the  routine  office  work  con- 
nected with  the  assignment  of  accommodations  to  passengers 
who  are  booked  by  agents  throughout  the  country,  and  by  branch 
and  district  offices. 

Main  Office  Landing  Clerks. — The  landing  clerks  for  the  cabin 
service  of  a  steamship  line  are  also  connected  with  the  main 
office  of  the  Passenger  Traffic  Manager.  These  clerks  board  in- 
coming vessels  at  quarantine ;  they  represent  the  company  with 
the  United  States  immigration  authorities ;  they  endorse  tickets 
when  necessary ;  and  they  advise  the  cabin  passengers  regard- 
ing railroad  connections  to  interior  destinations.  They  must, 
therefore,  have  the  knowledge  of  experts  as  to  railroad  connec- 
tions and  immigration  laws,  and  coming  into  contact  with  many 
foreigners  it  is  desirable  that  they  understand  and  talk  foreign 
languages.  Junior  booking  clerks  frequently  become  landing 
clerks,  and  sometimes  a  senior  booking  clerk  desiring  outside 
work  will  become  a  landing  clerk.  Some  hardship  is  encountered 
in  bad  weather,  but  the  work  of  a  landing  clerk  is  healthful  and 
diversified. 


PASSENGER  TRAFFIC  DEPARTMENT  37 

Main  Office  Railroad  Booking  Clerks. — Under  the  landing 
clerks  in  the  cabin  service  is  a  railroad  booking  clerk  and  several 
junior  clerks  who  arrange  for  the  further  transportation  of 
steamship  passengers  desiring  to  travel  to  interior  destinations. 

Traveling  Passenger  Agents, — Ranking  with  the  senior  book- 
ing clerks  are  a  number  of  traveling  passenger  agents  who  in- 
crease their  company's  passenger  traffic  by  personal  solicitation 
cf  individual  passengers  or  groups  of  travelers,  and  by  instruct- 
ing and  overseeing  the  line's  passenger  agents.  They  also  act 
as  the  Passenger  Traffic  Manager's  representative  when  an 
agent  is  engaged.  They  need  to  possess  expert  knowledge  of 
the  line's  services,  for  they  are  frequently  called  upon  by  the 
agents  to  answer  questions  which  the  latter  are  unable  to  answer. 

Tourist  Department. — The  organization  of  an  ocean  steamship 
line  may  contain  a  Tourist  Department  operating  under  the 
supervision  of  the  Passenger  Traffic  Manager.  The  main  office 
staff  of  such  a  department  includes  a  senior  or  chief  clerk  and  a 
number  of  junior  clerks  who  perform  the  detailed  traffic  work 
connected  with  vessels  assigned  to  tourist  cruises.  The  chief 
clerk  is  frequently  recruited  from  some  one  of  the  various  tourist 
agencies  who  have  for  years  made  a  special  business  of  taking 
parties  or  entire  ship  loads  of  passengers  on  tourist  voyages. 

A  steamship  line  with  a  Tourist  Department  engages  in  the 
organized  tourist  business.  Certain  vessels  are  assigned  to  tourist 
cruises  over  selected  routes ;  the  men  in  the  Passenger  Traffic 
Department  who  put  through  the  traffic  arrangements  need  to  be 
well  versed  in  the  conditions  of  travel,  and  in  the  history,  geogra- 
phy and  points  of  interest  of  the  foreign  countries  to  be  toured. 

The  Publicity  Department. — Although  passenger  traffic  is  de- 
veloped partly  by  personal  solicitation,  it  differs  from  freight 
traffic  in  that  it  depends  more  largely  upon  advertising.  So  much 
of  a  passenger-carrying  steamship  line's  publicity  in  fact  is  con- 
cerned with  its  passenger  business  that  its  Publicity  Department 
is  placed  under  the  supervision  of  the  Passenger  Traffic  Man- 
ager. The  department  in  case  of  a  large  passenger  line  usually 
includes  a  chief  clerk  and  several  junior  clerks,  the  former 
usually  being  a  practical  advertising  man  with  experience  in 
ocean  transportation.  In  case  of  a  passenger  line  very  largely 
dependent  upon  its  freight  traffic,  or  in  case  of  a  cargo-carrying 
line,  the  publicity  staff  may  not  attain  the  position  of  a  depart- 


'>>f'*^Ai  ^ 


9m 


38         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

ment,  but  lines  making  a  real  effort  to  develop  their  passenger 
business  expend  large  sums  in  publicity  and  prefer  to  have  these 
expenditures  applied  effectively. 

Steamship  advertising  and  publicity  reaches  the  traveling  pub- 
lic in  part  directly  in  the  form  of  advertisements  placed  in 
widely  read  weekly  and  monthly  magazines  and  other  publica- 
tions kniown  to  be  good  mediums  for  shipping  advertisements, 
and  in  part  through  attractive  descriptive  booklets  and  circulars, 
maps,  window  signs,  pictures,  vessel  accommodation  plans,  sail- 
ing announcements,  etc.,  which  are  widely  distributed.  Some  of 
the  publicity  reaches  the  traveling  public  directly,  and  some  of 
it  is  inside  publicity  which  is  directed  to  the  company's  agents, 
branch  offices  and  booking  clerks. 

The  Supply  Department. — The  advertising  material  in  the 
form  of  framed  pictures,  booklets,  etc.,  prepared  by  the  Publicity 
Department  is  often  distributed,  not  directly  by  that  department, 
but  by  a  supply  department  which  handles  all  the  supplies  pro- 
vided by  the  company  for  the  use  of  its  agents  and  home  office. 
It  handles  not  only  supplies  originating  in  the  Publicity  Depart- 
ment, but  also  tickets,  books  and  forms  and  the  certificates  of 
appointment  of  agents.  The  head  of  the  department  may  also 
act  as  the  office  paymaster  of  the  Passenger  Traffic  Department. 

The  Supply  Department  is  not  to  be  confused  with  the  Vic- 
tualing Department  which  under  the  direction  of  a  Victualing 
Superintendent  and  under  the  general  supervision  of  the  Man- 
ager of  Operations  is  in  charge  of  all  the  food  supplies  needed 
aboard  ship. 

Branch  Offices. — The  Cabin  and  Steerage  Departments  of  a 
passenger-carrying  line  maintain  branch  offices  abroad  and  at 
various  points  in  the  United  States.  In  many  cases  the  line's 
branch  offices  handle  both  freight  and  passenger  traffic,  but  they 
are  responsible  to  the  Freight  Traffic  Department  for  the  one  and 
to  the  Passenger  Traffic  Department  for  the  other.  If  the 
branch  offices  are  large  they  have  separate  freight  and  passenger 
departments  for  the  two  kinds  of  service. 

As  in  the  freight  service  a  passenger-carrying  line  frequently 
maintains  branch  passenger  offices  at  outports  in  the  United 
States,  each  with  an  organization  similar  to  that  of  the  home 
office.  The  head  of  such  a  branch  office  is  usually  responsible 
to  the  Passenger  Traffic  Alanager,  but  receives  instructions  from 


PASSENGER  TRAFFIC  DEPARTMENT  39 

the  Assistant  Passenger  Traffic  Manager  regarding  the  steerage 
or  third  class  service.  There  are  also  passenger  departments  in 
the  company's  district  offices  located  at  large  interior  cities. 
Branch  offices  or  agencies  are  maintained  to  represent  the  line 
abroad  and  to  develop  and  handle  its  passenger  as  well  as  its 
freight  traffic.  What  was  stated  in  the  preceding  chapter  con- 
cerning their  organization  similar  to  the  home  office,  and  concern- 
ing the  relatively  little  interchange  of  employees,  applies  also  in 
the  passenger  service.  When  arrangements  are  made  with  a 
foreign  concern  to  act  as  an  agent  the  agent  is  responsible  to 
the  home  office  but  appoints  his  own  personnel. 

Passenger  Agents. — The  Passenger  Traffic  Department  has 
agents  at  many  points  throughout  the  United  States.  They  are 
appointed  tmder  rules  and  regulations  and  in  the  judgment  of 
the  heads  of  the  Passenger  Traffic  Department  and,  as  in  case  of 
freight  service  work,  on  a  commission  basis.  They  are  responsi- 
ble directly  to  the  Passenger  Traffic  Manager,  but  are  also  a 
part  of  the  Steerage  Department  and  receive  instructions  from 
the  Assistant  Passenger  Traffic  Manager  regarding  the  develop- 
ment of  the  steerage  business  and  the  booking  of  steerage 
passengers. 

The  Steerage  Department 

The  responsible  functions  of  the  Assistant  Passenger  Traffic 
Manager  with  respect  to  steerage  or  third  class  fares,  the  pool- 
ing of  traffic,  the  classification  of  services,  the  extension  of  ser- 
vices, the  examination  of  newly  acquired  vessels,  and  the  formu- 
lation of  general  policies  were  mentioned  above  because  he 
performs  them  in  cooperation  with  the  Passenger  Traffic  Man- 
ager. He  is  also  the  immediate  head  of  the  Steerage  Department 
which  he  administers  and  supervises.  The  volume  of  steerage 
traffic  in  the  trans-Atlantic  trade  greatly  exceeds  that  of  the 
cabin  services,  and  its  revenue  importance  is  so  great  as  to 
demand  painstaking  attention.  In  1913,  before  the  war  dis- 
turbed the  passenger  business,  75.7  per  cent,  of  the  westbound 
and  65.8  per  cent,  of  the  eastbound  passenger  traffic,  and  72.9 
per  cent,  of  the  total  North  Atlantic  passenger  traffic  was  third 
class  or  steerage.  But  8.4  per  cent,  of  the  total  number  of  pas- 
sengers traveled  first  class  and  18.7  per  cent,  traveled  second 
class. 


40         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

The  Steerage  Department  has  branch  offices  and  agents  as 
was  stated  above,  but  its  main  office  still  needs  to  be  briefly 
described. 

Steerage  Booking  Clerks. — Steamship  lines  carrying  large  num- 
bers of  passengers  usually  have  separate  booking  clerks  for  the 
cabin  and  steerage  services.  There  may  be  a  chief  booking  clerk 
for  each  service  in  which  many  steerage  passengers  are  carried 
and  a  number  of  junior  clerks  under  each  chief  booking  clerk. 
Their  main  qualification  is  a  knowledge  of  the  service  to  which 
they  are  assigned  and  of  the  various  languages  and  dialects 
spoken  by  the  many  foreigners  with  whom  they  come  into 
contact. 

Steerage  Landing  and  Railroad  Booking  Clerks. — The  land- 
ing of  steerage  passengers  may  be  handled  either  by  the  same 
landing  clerks  who  attend  to  this  work  in  the  cabin  services  or 
by  separate  clerks  who  are  specialists  in  immigration  and  emi- 
gration. So,  too,  may  the  same  persons  serve  as  railroad  book- 
ing clerks  in  all  classes  of  services,  or  separate  clerks  may  be 
assigned  to  the  steerage  passengers.  In  any  case  the  landing 
and  railroad  booking  clerks  when  performing  their  duties  in 
the  steerage  service  are  under  the  supervision  of  the  head  of 
the  Steerage  Department. 

At  New  York,  where  the  number  of  immigrants  arriving 
greatly  exceeds  that  at  any  other  American  port,  the  steamship 
lines  and  the  railroads  work  in  close  cooperation  in  the  trans- 
portation of  immigrants  to  interior  destinations.  The  eastern 
and  western  trunkline  railroads  have  special  agents  at  Ellis  Island 
to  issue  railroad  tickets  and  divide  the  total  immigrant  traffic 
among  the  various  railroads  so  that  the  immigrant  service  provid- 
ed by  each  will  be  efficiently  utilized.  The  steamship  companies 
agree  to  sell  through  transportation  from  European  points  to  in- 
terior points  in  the  United  States.  Their  agents  issue  steamship 
tickets  to  New  York  and  steamship  orders  entitling  the  immi- 
grants to  further  transportation  to  interior  destinations.  If  des- 
tined to  points  on  the  eastern  trunklines  the  presentation  of  their 
steamship  orders  to  the  agents  of  the  eastern  trunklines  will 
cause  them  to  issue  railroad  tickets  entitling  the  immigrants 
to  railroad  transportation  in  the  special  immigrant  train  or  cars 
provided  for  the  purpose,  and  to  the  special  immigrant  fares, 
applicable  only  to  bona  fide  immigrants.     If  they  are  destined 


PASSENGER  TRAFFIC  DEPARTMENT  41 

to  western  points  the  agents  of  the  western  trunklines 
indicate  on  the  steamship  order  the  western  railroad  route 
selected  by  them,  after  which  the  agents  of  the  eastern 
trunklines  make  out  through  railroad  tickets  over  this  western 
route  and  over  the  eastern  trunkline  route  selected  to  carry  this 
particular  group  of  immigrants  out  of  the  port.  This  arrange- 
ment of  the  railroads  and  steamship  lines  at  New  York  is  of 
advantage  to  the  immigrants  who  are  assured  of  an  organized 
through  transportation  service  and  avoid  the  risk  when  ashore 
of  spending  for  other  purposes,  or  being  relieved  of  the  funds 
with  which  they  had  intended  purchasing  railroad  transportation. 

The  traveling  passenger  agents,  and  the  Publicity  and  Supply 
Departments,  though  directly  under  the  Passenger  Traffic  Man- 
ager, are  also  connected  with  the  Steerage  Department.  The 
functions  performed  by  them  concern  both  departments.  They 
are  responsible  to  the  Assistant  Passenger  Traffic  Manager  when 
dealing  with  steerage  service. 

Both  the  Steerage  and  Cabin  Departments,  of  course,  have 
clerks  for  general  office  work,  and  stenographers,  typists,  office 
boys  and  messengers.  The  Passenger  Traffic  Manager  and  the 
Assistant  Passenger  Traffic  Manager,  in  the  typical  large  line 
organization  contained  in  Chart  No.  IV,  each  has  a  private 
secretary  concerning  whom  the  account  contained  in  the  pre- 
ceding chapter  regarding  the  opportunities  and  qualifications  of 
private  secretaries  is  applicable. 

Cooperation  with  Other  Departments 

The  representatives  of  the  Passenger  Traffic  Departments 
aboard  a  vessel  are  the  purser,  the  assistant  purser  and  frequently 
a  numtytT'oTJiwior  clerks.  The  place  of  these  men  in  the  busi- 
ness organization  of  a  steamship'Tine  is  in  the  JJarine  or  Deck 
Department  under  the  Marine  Superintendent,  but  the  nature 
of  their  work  is  such  that  they  are  also  responsible  to  the  heads 
of  the  Passenger  Traffic  Department  and  to  the  Treasurer.  They 
are  responsible  for  the  collection  of  passenger  tickets  and  are 
in  charge  of  the  ship's  passenger  list  afloat,  the  preparation  of 
reports  and  the  performance  of  various  clerical  duties.  Booking 
clerks  sometimes  take  positions  on  board  vessels  and  the  line 
for  promotion  from  ship  to  shore  is  open. 


42         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Ashore,  the  heads  of  the  Passenger  Traffic  Department,  as 
was  previously  stated,  come  into  contact  with  the  Marine  De- 
partment and  the  Freight  Traffic  Department  when  questions 
concerning  the  extension  of  services  or  the  acquisition  of  ves- 
sels is  under  consideration.  They  also  cooperate  with  the  latter 
department  when  the  company's  policy  regarding  conference 
agreements  affecting  both  the  passenger  and  freight  services  are 
formulated,  and  when  changes  are  contemplated  regarding  branch 
offices  or  agencies  that  represent  the  company  in  both  services. 

The  Passenger  Traffic  Department  is  in  close  cooperation  with 
the  Treasurer's  Department,  not  only  in  that  there  are  Cashiers 
or  a  Cashier's  office  in  both  the  Cabin  and  Steerage  Passenger 
Departments  to  turn  the  passenger  receipts  of  the  company  over 
to  the  Treasurer,  and  cash  book  keepers  to  keep  the  necessary 
records,  but  also  in  that  the  Money  Order  Department  is  located 
in  the  Passenger  Traffic  Department.  In  the  typical  large  line 
organization  shown  in  Chart  No.  I  of  Chapter  I  the  Assistant 
Treasurer,  who  is  in  direct  charge  of  the  Money  Order  Depart- 
ment, has  his  office  in  the  Cabin  Department  so  as  to  be  con- 
veniently located  for  the  handling  of  travelers'  checks,  money 
orders,  and  drafts,  foreign  exchange  matters  and  money  chang- 
ing. This  office  is  also  closely  connected  with  the  Steerage 
Department  because  in  this  service  arrangements  are  frequently 
made  for  prepaid  passages  and  the  sale  of  money  orders  to  immi- 
grants. Many  agents  for  the  Steerage  Department  are  money 
lenders  or  small  bankers  with  whom  the  immigrants  deposit  their 
earnings,  and  they  make  a  business  of  selling  both  tickets  and 
money  orders.  The  tickets  sold  by  them  include  many  prepaid 
passages  to  bring  over  other  members  of  the  immigrants'  families. 

The  Auditor's  office,  which  is  part  of  the  Comptroller's  De- 
partment, has  direct  connection  with  the  Passenger  Traffic 
Department,  because  it  is  responsible  for  the  checking  of  passage 
money  and  passenger  tickets  sold  and  has  charge  of  the  pas- 
senger lists  or  manifests  ashore.^  Under  the  Auditor  in  the 
Comptroller's  Department  is  a  passenger  manifest  clerk. 

Chart  No.  I  in  Chapter  I  shows  that  the  Baggage  Department 
is  usually  under  the  supervision  of  the  General  Wharf  Superin- 
tendent, and  a  detailed  description  of  it  is  therefore  left  for  the 
manual  of  this  series  on  Wharf  Management  by  Dr.  R.  S.  Mac- 

*  See  Chapter  VIII,  Form  38. 


PASSENGER  TRAFFIC  DEPARTMENT  43 

Elwee  and  Mr.  T.  R.  Taylor.  The  Baggage  Department  is  closely 
connected  with  the  Passenger  Traffic  Department.  The  baggage 
master,  the  assistant  baggage  master,  and  the  various  cabin  and 
steerage  baggage  clerks  who  comprise  the  department  apply  the 
rules  and  instructions  governing  the  handling  of  baggage  which 
are  issued  by  the  heads  of  the  Passenger  Traffic  Department. 


CHAPTER  IV 

ORGANIZATION     AND     ADMINISTRATION     OF     CHARTERED 
STEAMSHIP  SERVICES  AND  SHIP  BROKERAGE 

The  traffic  conditions  favorable  to  the  operation  of  regular 
steamship  lines  do  not  always  obtain,  and  even  when  the  services 
of  lines  are  available,  shippers — particularly  those  having  full 
cargoes  of  bulky  commodities — often  prefer  to  charter  tramp 
vessels.  The  fleets  of  many  steamship  lines,  moreover,  consist 
in  part  of  chartered  vessels.  The  chartered  freight  service  re- 
ferred to  in  Chapter  I  continues  to  be  of  vast  importance  in 
international  commerce. 

It  is  the  purpose  of  this  chapter  to  trace  the  various  kinds  of 
chartered  service  and  types  of  tramp  operators ;  the  services 
performed  by  ship  brokers,  and  their  charges  and  business  or- 
ganization. The  varying  relations  between  vessel  owners  and 
charterers  and  their  respective  responsibilities  will  be  described 
in  Chapters  XII  and  XIII  in  connection  with  the  time  and  voyage 
charter  parties  which  constitute  the  basic  shipping  documents 
in  the  chartered  freight  service. 

Types  of  Chartered  Services 

The  most  common  kind  of  chartered  service  is  the  ordinary 
tramp  service  perfoiTned  when  a  vessel  is  chartered  by  a  shipper 
under  a  trip  or  voyage  charter  to  transport  a  full  cargo.  The 
vessel  may  be  chartered  to  proceed  to  a  destination  specified  in 
the  charter,  or  it  may  be  chartered  for  any  one  of  a  range  of 
destinations.  In  the  latter  case  the  master  may  receive  his  in- 
structions to  proceed  to  a  defined  destination  before  sailing,  or 
he  may  be  ordered  to  call  at  some  agreed  point  for  orders.  When 
shipping  grain  to  Europe,  for  example,  the  destination  of  the 
cargo  is  not  always  known  before  the  vessel  sails.  The  grain 
may  be  sold  while  afloat,  after  which  delivery  orders  will  be 
transmitted  to  the  master. 

44 


CHARTERED  STEAMSHIP  SERVICES  45 

When  chartering  a  tramp  vessel  for  an  agreed  voyage  it  may 
be  arranged  that  the  shipper  who  acts  as  charterer  is  to  provide 
a  cargo  consisting  mainly  of  a  certain  commodity  or  commodi- 
ties and  that  he  shall  be  responsible  for  a  charter  rate  based 
upon  a  full  cargo,  but  that  he  may  also  accept  cargo  for  other 
shippers  at  a  higher  or  lower  rate  of  freight  than  that  named 
in  the  charter  party.  The  shipper  who  chartered  the  vessel  is 
in  this  case  putting  the  vessel  on  the  berth  to  fill  available  space 
not  needed  for  his  own  cargo.  He  pays  the  agreed  charter  rate 
to  the  vessel  owner  and  in  turn  receives  freight  rates  from  the 
shippers  who  avail  themselves  of  the  offer. 

A  tramp  vessel  instead  of  being  chartered  for  a  full  cargo 
may  also  be  put  on  the  berth  by  its  owner  either  for  a  full  cargo 
or  for  smaller  shipments  to  fill  space  not  already  contracted  for. 
So,  too,  may  a  tramp  be  put  on  the  berth  for  large  or  small 
shipments  of  general  cargo  by  a  ship  broker,  general  operator, 
or  speculator  who  has  chartered  it  from  the  owner  for  this  ex- 
press purpose.  The  vessel  in  such  case  is  not  providing  a  tramp 
service  in  the  usual  sense;  it  has  virtually  been  withdrawn  tem- 
porarily from  the  tramp  service  to  carry  general  cargo  in  com- 
petition with  the  steamship  lines;  or  to  provide  a  general  cargo 
service  to  points  not  served  by  regular  lines.  The  operator  is 
engaging  in  a  speculation  and  for  that  reason  is  most  apt  to 
undertake  such  a  transaction  when  the  rates  of  the  regular  lines 
seem  to  be  exorbitant  or  when  a  shortage  of  tonnage  has 
developed. 

Steamship  line  operators  frequently  charter  vessels  on  time 
charters  to  supplement  the  line  vessels  owned  by  them  or  to 
conduct  a  line  service  in  fleets  consisting  entirely  of  chartered 
vessels.  To  meet  a  temporary  demand  a  line  may  even  charter 
a  vessel  for  a  single  voyage  on  a  trip  charter.  In  either  case, 
however,  the  vessel  has  for  the  time  being  entered  the  line  service. 

Types  of  Tramp  Owners  or  Operators 

Some  of  the  most  successful  tramp  owners  have  been  those 
with  but  a  single  vessel  or  with  small  fleets  of  but  two  or  three 
vessels.  The  master  of  a  tramp  vessel  may  in  fact  be  its  owner 
or  part  owner,  and  the  entire  business  of  operation  is  at  times 
left  to  the  master.     When  the  owner  is  not  the  master  he  may 


46         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

p.iaintain  an  office  organization,  but  it  may  consist  of  little  else 
than  a  correspondent  and  bookkeeper.  The  business  manage- 
ment of  such  tramp  owners  is  handled  largely  by  ship  brokers 
who  are  found  at  all  ocean  ports  of  importance  throughout  the 
world. 

Again  a  tramp  vessel  may  be  operated  not  by  its  owner  but  by 
small  or  large  operators  who  usually  charter  vessels  from  their 
owners  on  time  charter  parties.  The  owners  are  paid  the  hire 
agreed  upon  in  the  time  charters,  and  the  operators  obtain  their 
profits  from  the  effective  use  of  the  vessels  controlled  by  them. 
They  may  recharter  on  trip  charters,  i.e.,  perform  a  tramp  service 
in  the  usual  sense ;  they  may  place  the  vessels  on  the  berth  for 
full  or  part  cargoes ;  they  may  operate  them  in  ballast  when  nec- 
essary or  desirable,  or  they  may  recharter  them  on  time  charters 
at  higher  rates  of  hire. 

Similar  to  operators  of  this  kind  are  the  large  concerns  which 
in  England  are  known  as  managing  owners.  Through  them, 
fleets  ranging  from  half  a  dozen  to  more  than  one  hundred  are 
managed  from  one  office.  Some  of  the  vessels  may  be  owned 
by  the  concern,  while  others  are  owned  by  other  vessel  owners 
who  turn  them  over  to  the  managing  owner  for  operation  on  the 
basis  of  a  percentage  of  the  profits.  The  following  interesting 
account  of  the  operations  of  a  managing  owner  is  given  by  Mr. 
Joseph  A.  Slechta : 

These  vessels  are  seldom,  if  ever,  loaded  for  the  account  of  the  im- 
mediate operators  or  managers.  To  such  a  manager,  the  trade  routes  of 
the  entire  world  are  treated  somewhat  as  a  gigantic  chess-board,  and 
upon  this  the  manager  manipulates  his  "pieces"  or  vessels  in  accordance 
with  the  recommendations  of  a  specialist  of  the  world's  industries,  mar- 
kets, and  economic  conditions,  not  to  be  approached  in  comprehensive 
thoroughness  by  men  in  any  other  activity  of  the  world's  affairs.. 

It  is  the  duty  of  these  men  to  plan  the  voyages  of  the  owner's  vessels 
for  a  period  from  six  months  to  two  years  or  more,  in  advance ;  con- 
sideration is  given  by  them  to  one  and  one  only  ultimate  goal, — which  is 
the  maximum  net  profit  to  be  gained  from  the  operation  of  the  fleet. 
Frequent  statements  to  the  contrary  notwithstanding,  not  even  considera- 
tions of  national  polity  are  for  a  moment  allowed  to  outweigh  the  ques- 
tion of  profit.  It  is  true  that  frequently  the  interests  of  the  State  are 
served  best  in  making  profit  the  first  prerequisite.  If  in  the  past,  the 
managing  owners  of  Britain's  great  fleets  of  tramp  steamers  have  so 
distributed  them  over  the  world's  trade  routes  as  to  advance  British 
trade  interests,  it  has  been  because  in  that  direction  most  profit  was 
anticipated.  The  specialists  who  study  these  considerations  of  gain, 
having  determined  that  a  certain  trade  ofifers  the  best  advantages,  charter 


CHARTERED  STEAMSHIP  SERVICES  47 

vessels  for  that  trade  to  the  highest  bidder,  be  he  a  national  or  foreign 
subject  or  citizen. 

Let  us  take  a  concrete  illustration  of  a  few  of  the  principles  involved 
in  such  a  manipulation  of  ocean  tonnage.  Assume  that  one  7000-ton 
steamship  belonging  to  such  a  fleet  has  just  discharged  a  cargo  at  New 
York,  or  is  about  to  do  so.  Her  next  voyage  has  not  yet  been  determined 
upon.  Offers  are  received  from  ship  brokers  in  various  parts  of  the 
world,  and  these  are  before  the  Board  of  Experts  in  the  London  office. 
One  such  offer  is,  let  us  say,  for  a  cargo  of  coal  from  Newport  News  to 
Buenos  Aires,  the  rate  to  be  $5.00  per  ton  of  coal  carried.  Another  shipper 
of  coal  for  the  same  market,  but  from  Cardiff,  Wales,  offers  $4.00  per 
ton  on  the  same  conditions.  The  length  of  the  voyage  is  about  the  same 
in  both  cases.  A  third  offer  is  also  for  a  coal  cargo  at  $2.00  per  ton, 
delivered  in  Havana.  At  the  same  time,  the  current  rate  for  baled  cotton 
from  Galveston  to  Liverpool  offers  distinctly  good  returns.  Which  of 
the  three  coal  cargoes  is  finally  accepted  will  depend  upon  the  best  avail- 
able cargoes  to  be  had  after  the  voyage  is  completed.  If  the  $5.00  rate 
to  Buenos  Aires  be  accepted,  the  owners  note  that  the  vessel  will  be  in 
the  River  Plate  within  six  weeks,  ready  to  load,  but  the  wheat  harvest 
will  not  begin  for  four  months  and  the  current  year's  crop  is  nearly 
exhausted,  or  shipment  already  contracted  for.  Tl;e  rate  of  freight  of- 
fered is  the  best  immediately  available,  but  the  owner  must  plan  bej'ond 
the  first  three  or  even  six  months.  He  accepts  the  $2.00  rate  to  Havana, 
although  the  expenses  of  discharging,  added  to  his  regular  overhead,  leave 
little  if  any  margin.  He  has,  at  any  rate,  managed  to  meet  expenses  for 
the  greater  part  of  the  voyage  en  route  to  Galveston.  He,  at  the  same 
time,  closes  with  a  shipper  of  cotton  a  full  cargo  to  Liverpool,  and  an- 
other with  the  Cardiff  coal  company  for  coal  to  Buenos  Aires.  This 
route  brings  his  vessel  to  the  River  Plate  at  a  period  of  the  year  when 
rates  should  be  highest.  H£  may  not  immediately  close  this  business, 
say  with  wheat  to  Liverpool,  having  been  advised  by  his  experts  that  the 
crop  in  Argentina  will  be  large  and  that  an  unusually  small  number  of 
vessels  may  be  expected  to  accept  business  outward  to  the  Plate  within 
the  immediate  succeeding  weeks.  Rates  on  wheat  m.ay,  therefore,  con- 
fidentially be  expected  to  advance,  and  the  owner's  interests  are  best 
served  by  holding  off.  Eventually,  his  experts  may  find  that  their  calcula- 
tions have  been  upset  by  a  sudden  drought  which  will  bring  crop  failures 
in  Argentina;  but  there  has  been  a  large  crop  of  coffee  in  Brazil,  and  the 
sudden  failure  of  the  Argentina  wheat  crop  has  stimulated  the  demand 
for  American  wheat  in  France  and  England.  By  closing  a  charter  im- 
mediately for  coffee  to  New  York  and  wheat  from  New  York  to  Liver- 
pool, he  anticipates  a  drop  in  the  rates  for  this  business,  likely  to  be 
brought  about  by  the  large  numbers  of  vessels  looking  for  such  cargoes 
when  the  situation  becomes  more  generally  known. 

The  vessel  is  once  more  at  an  American  port,  having  carried  one  cargo 
outward,  brought  another  in,  and  engaged  to  carry  a  second  across  the 
Atlantic.  In  neither  case  is  opportunity  afforded  to  the  shipper  of  Ameri- 
can manufactured  products  to  increase  his  business  in  South  America  and 
many  authorities  hastily  ascribe  to  the  owner  motives  deliberately  calcu- 
lated to  injure  American  foreign  trade  interests,  when,  as  a  matter  of 
fact,  nothing  of  the  sort  has  happened.  The  hypothetical  case  cited  is 
one  of  the  most  simple  combinations  of  circumstances  with  which  the 
cwncr  of  large  fleets  of  tramp  steamers  may  be  confronted.     Ofttimes, 


48         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

they  are  vastly  more  complex,  necessitating  consideration  of  an  infinitely 
greater  variety  of  factors,  industrial,  agricultural  and  market.* 

Still  another  variation  in  type  of  tramp  owner  or  operator  is 
the  general  steamship  operator  or  steamship  agent,  whose  opera- 
tions are  not  confined  to  any  one  branch  of  shipping.  Many 
of  them  are  large  concerns  which  act  as  steamship  agents  for 
regular  line  companies,  organize  and  operate  one  or  more  lines 
on  the  basis  of  vessels  which  they  own  or  charter,  do  a  general 
ship  brokerage  business,  act  as  ocean  freight  forwarders,  handle 
marine  insurance,  hold  the  license  of  a  custom  house  broker  and 
manage  fleets  of  tramp  vessels.  The  same  concerns  in  some 
instances  operate  as  export  and  import  commission  houses  or 
merchants.  These  general  steamship  operators  are  prepared  to 
lease  out  their  own  vessels  under  any  of  the  various  forms  of 
charter  parties  described  in  Chapters  XII  and  XIII  if  it  should 
be  deemed  to  be  more  advisable  than  to  operate  them  in  the  line 
service ;  and  conversely  to  charter  vessels  from  other  ow^ners  for 
operation  either  in  the  line  or  tramp  service,  as  the  occasion 
may  warrant. 

Before  chartering  a  number  of  vessels  under  time  charters 
such  a  general  steamship  operator  at  times  makes  time  contracts 
with  large  shippers  of  sugar  or  other  staple  commodities,  so  that 
he  is  assured  of  a  portion  of  the  cargoes  needed  to  operate  the 
chartered  vessels.  This  is  his  method  of  limiting  his  risks,  of 
protecting  his  profits,  or  "hedging"  his  chartering  transactions. 

A  ship  broker  who  is  engaged  primarily  in  the  ship  brokerage 
business  may  also  at  times  became  a  tramp  operator.  He  may 
be  the  owner  of  one  or  more  vessels,  and  use  his  brokerage  or- 
ganization and  his  knowledge  of  shipping  requirements  in  their 
efficient  operation.  He  may  also  charter  a  vessel  on  his  own 
account  with  a  view  to  operating  or  rechartering  it  at  a  profit 
over  and  above  the  charter  rate  paid  to  its  owner. 

There  are,  moreover,  the  large  shippers  who  not  only  own 
vessels  but  also  charter  others  mainly  for  use  in  their  own  busi- 
ness. Their  prime  purpose  in  owning  or  chartering  vessels  is  to 
provide  themselves  with  the  private  or  industrial  transportation 
service  referred  to  in  Chapter  I.  They  may  operate  a  line  service 
or  dispatch  their  vessels  on  an  irregular  schedule,  loading  them 
mainly  with  their  own  cargoes,  but  efficient  operation  may  de- 

*  J.  A.  Slechta,  paper  on  "Practical  Steamship  Operation." 


CHARTERED  STEAMSHIP  SERVICES  49 

mand  that  they  sublet  unused  space  to  other  shippers  and  seek 
available  cargoes  on  return  trips. 


Services  Rendered  by  Ship  Brokers 

The  chartering  of  vessels  is  handled  largely  through  ship 
brokers.  Small  owners  or  operators  depend  upon  ship  brokers 
not  only  to  find  charterers  for  them  and  sometimes  to  handle 
their  business  affairs  ashore,  but  depend  largely  upon  them  for 
advice  as  to  how  the  voyages  of  their  vessels  should  be  planned. 
Larger  tramp  operators,  managing  owners  and  general  steamship 
operators  with  extensive  business  organizations  of  their  own  and 
expert  chartering  managers  are  less  dependent  upon  outside  ship 
brokers  in  planning  voyages,  but  they,  too,  obtain  advices  from 
them  and  frequently  carry  out  their  chartering  transactions 
through  the  medium  of  ship  brokers. 

The  main  work  of  ship  brokers  is  to  find  charterers  for  vessels 
and  vessels  for  charterers.  The  owners  or  operators  of  tramp 
vessels  seeking  cargoes  are  served  by  ship  brokers  who  "cover 
the  market"  daily,  i.e.,  they  keep  in  touch  with  shippers  who  are 
likely  to  become  charterers.  If  the  desired  full  cargoes  are  not 
available  at  the  port  in  which  a  particular  ship  broker  is  located 
and  where  the  vessel  has  arrived  or  is  about  to  arrive,  he  may 
be  able  to  locate  a  charterer  elsewhere  through  a  ship  broker 
or  agent  at  another  port.  Instead  of  chartering  the  vessel  to 
a  shipper  on  a  trip  charter,  the  broker  may  be  able  to  charter  it 
to  a  general  steamship  operator,  a  regular  steamship  line,  an 
industrial  concern  or  large  shipper,  or  to  a  small  or  large  tramp 
operator  on  a  time  or  perhaps  a  trip  charter  at  satisfactory 
terms.  Having  arranged  the  chartering  transaction  to  the  satis- 
faction of  owner  and  charterer  the  ship  broker  sees  to  the 
preparation  of  the  charter  party  and  its  execution. 

Ship  brokers  sometimes  are  important  factors  in  the  loading, 
discharging,  and  operation  of  chartered  vessels.  Their  services 
in  this  connection  depend  upon  the  terms  of  the  charter  party 
as  to  whether  loading  and  discharging  or  either  of  these  services 
is  to  be  performed  by  the  vessel  owner.  When  attending  to  the 
loading  or  discharging  of  a  vessel  for  the  owner  the  ship  broker 
in  effect  becomes  what  in  Great  Britain  is  known  as  a  "loading 
broker."    This  term  is  not  in  general  use  in  the  United  States, 


50         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

but  the  same  work  is  performed  by  ship  brokers  who  make  the 
necessary  arrangements  for  the  vessel  owners.  Charter  parties 
sometimes  specify  that  the  vessel  is  "to  be  consigned  at  port  of 
discharge  to  owners  or  their  agents,  by  whom  the  steamer  is  to 
be  reported  at  the  custom  house."  The  owner  in  this  case  needs 
to  be  represented  on  the  spot,  his  agent  frequently  being  a  ship 
broker  to  whom  the  vessel  is  consigned.  The  broker  after  con- 
sulting the  principal  cargo  owners,  arranges  with  the  port  author- 
ities the  dock  at  which  the  vessel  shall  discharge,  and  on  arrival 
of  the  vessel  sees  that  the  requirements  of  the  custom  house 
are  duly  fulfilled.  If  any  freight  is  due  at  destination,  he  will 
attend  to  its  collection ;  he  will  provide  for  the  vessels  disburse- 
ments ;  and  after  deducting  his  own  charges  will  remit  the 
balance  to  the  owners.^ 

Should  it  be  decided  by  the  owner  or  operator  to  put  a  vessel 
on  the  berth  a  ship  broker  may  be  instructed  to  provide  cargo 
and  handle  the  transaction.  The  ship  broker,  who  then  in  eflfect 
becomes  a  steamship  agent,  may  advertise  the  voyage  and  send 
notices  to  shippers  who  are  likely  to  ship  in  the  vessel,  or  solicit 
cargoes  from  them  personally.  He  makes  the  necessary  docking 
arrangements,  books  freight  at  such  rates  as  the  market  warrants, 
arranges  for  the  receipt  and  loading  of  the  cargoes,  signs  bills  of 
lading  for  the  ownefs  or  master,  collects  the  freight  if  it  is  to 
be  prepaid,  pays  the  vessel's  disbursements  at  the  port,  makes 
out  the  ship's  manifest,  clears  her  outwards  at  the  custom  house, 
deducts  his  own  expenses  and  charges  and  remits  the  balance  to 
the  owners.^ 

Not  all  ship  brokers  are  equipped  to  place  a  tramp  vessel  on 
the  berth.  Many  of  them,  however,  are  steamship  agents  as 
well  as  ship  brokers  and  possess  a  business  organization  suit- 
able not  only  for  chartering  vessels  but  also  for  loading,  dis- 
charging and  operating.  As  has  been  stated,  ship  brokers  some- 
times charter  vessels  on  their  own  account  and  put  them  on  the 
berth  for  cargo. 

Ship  brokers  are  also  engaged  in  the  selling  of  vessels.    As  in 

a  chartering  transaction  they  serve  as  a  medium  through  which 

the  owner  and  purchaser  get  together.    When  satisfactory  selling 

terms  have  been  agreed  upon,  the  ship  broker  executes  a  form  of 

'Douglas  Owen,  Ocean  Trade  and  Shipping,  p.  89   (Cambridge,  Eng., 
1914). 
'  Ibid^.  p.  90. 


CHARTERED  STEAMSHIP  SERVICES  51 

contract,  and  when  title  passes  he  executes  the  necessary  bill  of 
sale.  He  also  arranges  for  the  transfer  of  the  vessel  to  its  new 
owner,  which  in  the  United  States  necessitates  obtaining  a  consu- 
lar bill  of  health,  an  inventory  of  supplies  on  board  and  a  certifi- 
cate of  registry.  In  England  some  ship  brokers  are  known  as 
"brokers  for  sale  of  ship"  to  distinguish  them  from  "chartering 
brokers,"  and  "loading  brokers."  *  This  terminology  is  not  in 
general  use  in  the  United  States,  and  ship  brokers  here  do  not 
confine  themselves  to  one  function  only.  All  of  them  are  ready 
to  charter  and  sell  the  vessels  of  ship  owners,  but  some  of  them 
are  not  organized  to  act  as  loading  brokers. 

The  business  of  marine  insurance,  which  is  described  in  a 
separate  manual  of  this  series,  is  so  closely  interwoven  with 
ocean  shipping  that  ship  brokers  usually  act  also  as  marine  in- 
surance brokers  so  as  to  be  in  a  position  to  attend  to  the  insurance 
of  vessels,  freight  and  cargoes  when  authorized  to  do  so.  They 
may  likewise  hold  the  license  of  a  custom  house  broker. 

Business  Organization  of  Ship  Broker 

The  ship  brokerage  business  is  so  organized  and  the  nature  of 
the  business  is  such  that  the  comparatively  small  staff  of  a 
broker  is  able  to  transact  a  business  of  large  volume  and  almost 
world-wide  scope.  The  business  organization  shown  in  the  ac- 
companying chart  (No.  V)  may  be  regarded  as  that  of  a  typical 
large  American  ship  broker.  There  are  many  smaller  ship 
brokerage  concerns,  the  business  organization  of  which  is  very 
much  smaller.  There  are,  in  fact,  instances  where  a  single 
individual  conducts  a  ship  brokerage  business,  his  office  facili- 
ties consisting  of  desk  room  in  some  conveniently  located  business 
office. 

In  the  typical  organization  of  a  large  ship  broker  there  is  a 
Manager  to  supervise  the  work  of  his  staff,  to  establish  connec- 
tions with  ship  brokers  at  foreign  ports  and  at  other  ports  in  the 
United  States,  to  decide  matters  of  importance  in  connection  with 
charter  forms  and  sales  contracts,  keep  in  touch  with  vessel 
owners  and  prospective  charterers,  plan  operations  in  case  he 

*  Thomas  E.  Scrutton  and  F.  D.  Mackinnon,  The  Contract  of  Affreight- 
ment as  Expressed  in  Charter  Parties  and  Bills  of  Lading.  (Seventh 
Edition,  London,  1914). 


52 


OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


decides  to  charter  a  vessel  on  his  own  account,  and  generally 
to  determine  the  business  policies  to  be  pursued.  There  are 
two  or  three  Assistant  Managers  in  the  large  ship  brokerage 
house,  whose  main  work  consists  in  covering  the  market  daily. 
They  endeavor  to  keep  in  almost  constant  touch  with  the  large 
shippers  and  other  business  concerns  that  are  likely  to  be  in  the 
market  to  charter  vessels.  In  case  a  vessel  is  put  on  the  berth 
they  are  also  engaged  in  procuring  freight  for  it.  As  charter 
rates  are  largely  determined  by  bargaining  and  the  sums  involved 
are  large  they  need  to  have  a  wide  knowledge  of  charter  rates, 
good  business  sense  and  the  ability  to  successfully  approach  and 


Chart  V 


TYPICAL  BUSINESS  ORGANIZATION  OF  A  LARGE   SHIP  BROKER 


Manager 


Two  or  Three 
Asst.  Managers 


Foreign  Oonnec 

tlons  or  Oorre- 

epondonts 


|One  or  Two  Janlors]    [Two  StenoBrapherB] 


I      Oashler      | 


Oonncctlone 

or 

Oorreepon- 

lentsat  other 

American 

Ports 


\    Asst.Cbshler    I 


negotiate  with  charterers.  The  variations  in  the  provisions  con- 
tained in  charters  are  so  wide  and  yet  so  important  to  both 
owner  and  charterer  that  they  need  to  possess  expert  knowledge 
of  charter  forms.  Types  of  vessels  and  their  uses  are  so  diverse 
that  they  need  to  be  familiar  with  the  essential  particulars  of 
the  vessels  for  which  they  seek  charterers.  If  these  vessel  par- 
ticulars are  not  obtainable  from  their  files  they  need  to  consult 
Lloyds  Register  or  other  available  sources  of  information.  They 
frequently  possess  blue  prints  of  a  vessel's  deck  plan  and  hold 
arrangements. 

One  or  two  juniors  are  employed  to  handle  office  detail  work 
in  connection  with  the  preparation  of  charter  parties,  sales  con- 
tracts and  bills  of  sale,  maintaining  the  office  files,  custom  house 
work,  and  other  activities  engaged  in  by  the  brokerage  house.  A 
Cashier  and  Assistant  Cashier  handle  the  bookkeeping  and  finan- 


CHARTERED  STEAMSHIP  SERVICES  S3 

cial  work.  The  staff  of  this  organization  also  includes  several 
stenographers. 

This  is  a  typical  office  staff  for  conducting  a  general  ship 
brokerage  business,  whether  through  a  large  ship  broker  en- 
gaged exclusively  in  this  business  or  through  the  Chartering 
Department  of  a  steamship  agent  or  general  steamship  operator. 
The  ship  broker  may,  however,  equip  himself  with  an  additional 
organization  for  loading,  discharging^  and  operating  vessels. 
Such  a  staff  is  not  necessarily  included  in  the  business  organiza- 
tion of  a  ship  broker.  If  the  ship  broker  is  equipped  to  put 
vessels  on  the  berth  for  cargo  he  virtually  becomes  a  steamship 
agent  and  has  an  organization  approximating  that  described  in 
Chapter  XL 

Aside  from  this  office  organization  each  ship  broker  has  con- 
nections or  correspondents  at  a  large  number  of  foreign  ports 
and  at  other  ports  in  the  United  States,  and  he  may  have  branch 
offices  at  certain  ports.  These  connections  or  correspondents 
usually  are  themselves  ship  brokers,  so  that  the  ship  brokerage 
business  throughout  the  commercial  world  constitutes  a  closely 
woven  business  fabric.  The  ship  brokers  of  the  world  together 
"make  a  complicated  web  that  reaches  to  all  cities  of  commer- 
cial importance.  The  whole  is  so  bound  together  by  telegraph 
and  cable  that,  like  a  spider's  web,  if  touched  by  anything  of 
importance  at  any  point  the  whole  structure  vibrates  with  the 
news."  °  It  is  this  practice  of  establishing  connections  with  each 
other  at  many  ports  that  enables  the  individual  ship  brokerage 
house  to  conduct  an  extensive  business  with  a  small  office  staff. 
The  main  expense  of  a  ship  broker  in  a  chartering  transaction 
in  many  instances  results  from  the  extensive  use  of  the  telegraph 
and  cable. 

Ship  brokers  frequently  are  members  of  associations  or  ex- 
changes. Many  ship  brokers,  for  example,  are  members  of  the 
New  York  Produce  Exchange,  which  has  adopted  an  approved 
grain  charter  party,  and  approved  berth  terms  contracts  which 
are  entered  into  subject  to  the  rules  of  the  Exchange  and  with 
the  agreement  that  disputes  arising  at  the  port  of  loading  shall 
be  subject  to  arbitration  at  New  York  as  provided  in  these  rules. 
The  rules  of  the  Exchange  regulating  the  steamship  business 
authorize  arbitration  either  by  a  standing  Committee  on  Steam- 

'J.  Russell  Smith,  Organisation  of  Ocean  Commerce,  p.  11. 


54         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

ship  Affairs  or  by  private  arbitration,  and  they  standardize  the 
practice  of  the  port  with  respect  to  lay-days,  demurrage,  notifica- 
tion of  readiness  and  various  other  matters  referred  to  in  the 
chapters  deahng  with  charter  parties.  The  Exchange  also  affords 
facilities  for  quoting  grain  charter  rates,  for  chartering  vessels, 
engaging  space,  and  contracting  marine  insurance. 

Ship  brokers  may  also  be  members  of  so-called  maritime  ex- 
changes. The  Philadelphia  Maritime  Exchange,  for  example, 
keeps  records  of  charter  parties  and  the  movement  of  vessels ; 
it  has  reporting  stations  with  agents,  collects  current  shipping 
news  and  shipping  statistics,  and  provides  facilities  for  the 
arbitration  of  shipping  disputes.  It  has  also  standardized  the 
grain  charter  party  and  adopted  local  rules  governing  vessel 
demurrage,  loading  and  discharging  and  the  receipt  and  delivery 
of  various  kinds  of  cargo. 

Ship  Brokerage  Charges  and  Profits 

The  usual  compensation  of  a  ship  broker  for  chartering  a 
vessel  on  a  voyage  charter  is  a  commission  in  the  form  of  a 
percentage  on  the  gross  amount  of  freight,  dead  freight  and 
demurrage  provided  for  in  the  charter.  Dead  freight  is  the 
difference  between  the  charter  rate  per  unit  of  cargo  applied  to 
the  full  cargo  called  for  in  the  charter,  and  this  rate  appHed 
to  the  actual  cargo  on  board,  which  may  be  less  than  a  full  cargo. 
Demurrage  is  the  amount  paid  by  the  charterer  in  case  loading 
is  not  completed  within  a  specified  number  of  days  after  the 
vessel  is  ready  to  receive  cargo  or  does  not  proceed  at  the  rate 
of  an  agreed  number  of  tons  per  day.  The  commission  is  paid 
by  the  vessel  owner  or  operator. 

When  a  vessel  is  put  on  the  berth  for  its  owner  or  operator  by 
a  ship  broker  his  commission  is  likewise  a  percentage  of  the 
freight.  Under  a  time  charter  he  receives  from  the  owner  or 
operator  a  percentage  of  the  gross  freight  or  hire,  provided  for 
in  the  charter  party.  If  he  sells  the  vessel  he  receives  a  per- 
centage of  the  price  paid  for  the  vessel. 

The  broker's  commission  for  chartering  vessels  or  putting 
them  on  the  berth  varies.  It  may  be  as  low  as  1/4  per  cent,  or 
as  high  as  5  per  cent.,  depending  upon  the  size  of  the  vessel,  the 
nature  of  the  services  required  by  the  owner,  the  custom  of  the 


CHARTERED  STEAMSHIP  SERVICES  55 

port,  and  other  contingencies.  The  printed  charter  forms  do  not 
always  disclose  the  actual  rate  of  commission ;  old  forms  may 
be  used  in  which  5  per  cent,  commission  is  specified,  although 
the  understanding  is  that  the  broker  shall  receive  but  2^^  per 
cent. 

Some  charter  parties  p£oyide  that  Jn  addition  to  the  com- 
mission paid  to  the  broker  he  shall  also  receive  the  "customary 
freight  brokerage."  This  usually  refers  to  an  agreed  or  cus- 
tomary amount  over  and  above  his  commission  for  attending 
to  the  ship's  business  at  the  port  of  loading.  As  in  case  of  the 
broker's  commission,  the  presence  of  this  clause  in  the  printed 
form  is  not  always  evidence  that  the  broker  in  every  case  re- 
ceives "the  customary  freight  brokerage." 

When  a  ship  broker  provides  vessel  or  cargo  owners  with 
marine  insurance  he  is  acting  as  a  marine  insurance  broker 
and  obtains  a  commission  from  the  insurance  company.  When 
he  acts  in  the  capacity  of  a  custom  house  broker  he  receives  the 
customary  fees  referred  to  in  Chapter  IX.  Should  he  charter 
a  vessel  on  his  own  account,  either  to  recharter  it  at  a  higher 
rate  or  put  it  on  the  berth,  he  aims  to  make  a  business  profit  on 
the  venture,  for  in  such  case  he  becomes  a  vessel  operator.  If 
he  is  a  vessel  owner  as  well  as  a  ship  broker  the  revenues  de- 
rived from  his  own  vessels  likewise  depend  upon  whether  he  can 
charter  his  vessels,  put  them  on  the  berth,  or  otherwise  operate 
them  profitably. 


CHAPTER  V 

RATE   AND   TRAFFIC   AGREEMENTS,    POOLS   AND    CONFER- 
ENCES OF  OCEAN  CARRIERS 

The  differences  between  tramps  and  lines  mentioned  in  the 
preceding  chapters  have  a  special  bearing  on  the  extent  to  which 
their  rates  and  services  are  controlled  by  agreement.  Although 
a  measure  of  cooperation  among  chartered  vessels  has  at  vari- 
ous times  been  attempted,  complete  cooperation  is  difficult  to 
attain.  The  vast  number  of  vessels  and  their  owners,  the  bulky 
character  of  the  greater  part  of  their  cargoes,  the  relatively  small 
investment  required  to  engage  in  the  tramp  service,  and  the  fact 
that  they  are  not  limited  to  particular  routes  or  ports,  have  main- 
tained a  much  greater  degree  of  competition  among  chartered 
vessels  than  among  lines.  Indeed,  the  most  disturbing  element 
confronting  the  lines  is  the  frequent  competition  between  the  line 
and  tramp  services. 

Conference  Agreements  in  Chartered  Ocean  Services 

The  occasional  agreements  or  conferences  that  have  been 
arranged  among  the  owners  of  tramp  vessels  have  been  limited 
in  scope  and  have  had  no  great  effect  upon  charter  rates.  In 
1904,  for  example,  the  Sailing  Ship  Owners'  International  Union 
was  organized  for  the  object  of  fixing  minimum  rates  of  freight 
for  the  principal  voyages  in  which  sailing  vessels  are  engaged 
in  bringing  freight  to  European  ports  from  countries  outside  of 
Europe.  A  permanent  committee  was  organized  by  the  union  to 
fix  these  freight  rates  from  time  to  time  for  the  various  leading 
foreign  ports.  In  joining  the  union  each  member  promised  to 
abide  by  all  rates  fixed  by  the  union,  and  not  to  grant  any  re- 
bates or  commissions.  He  also  agreed  to  let  his  ship  lie  by  or 
sail  in  ballast  if  cargo  could  not  be  secured  at  union  rates. 

*  This  chapter  is  reproduced  from  Emory  R.  Johnson  and  Grovcr  G. 
Huebner,  Principles  of  Ocean  Transportation,  Chapter  XIX. 

56 


RATE  AND  TRAFFIC  AGREEMENTS        57 

The  scope  and  effect  of  this  conference,  however,  were  de- 
cidedly limited.  It  applied  only  to  certain  long  voyages,  such 
as  those  from  the  west  coast  of  South  and  North  America  and 
the  return  voyages;  only  sailing  vessels  were  included  in  the 
agreement ;  and  these  had  to  be  relatively  large  vessels  of  an 
agreed  minimum  tonnage.  The  rates  agreed  upon,  moreover, 
were  merely  a  minimum,  which  was  fixed  largely  with  reference 
to  the  line  of  no  profit. 

There  are  also  various  steamship  owners'  associations,  par- 
ticularly in  Great  Britain,  that  have  at  times  endeavored  to  con- 
trol charter  rates  between  certain  of  the  larger  ports,  but  have 
never  exerted  a  widespread  effect  upon  such  charges.  They  are 
concerned  mainly  with  obtaining  favorable  harbor  regulations 
and  shipping  legislation ;  government  protection  against  the  ship- 
ping policies  of  foreign  countries;  improved  charter  parties;  re- 
duced coal-trimming  charges ;  favorable  tolls ;  protection  against 
organized  labor;  or  economical  marine  insurance.^  In  1905  a 
number  of  vessel  owners  entered  into  an  agreement  applicable  to 
the  rate  on  lumber  from  Norway,  Sweden  and  Russia  to  Great 
Britain,  Germany,  Holland,  Belgium  and  France ;  but  the  main 
work  of  the  organization  has  been  in  building  up  a  uniform  char- 
ter party  and  in  providing  rules  governing  matters  such  as 
lumber  measurement,  loading,  discharging  and  insurance. 

At  times  certain  ship  operators  have  complained  of  agreements 
making  it  difficult  for  them  to  charter  vessels  for  use  in  par- 
ticular trades,  such  as  the  trade  between  Porto  Rico  and  the 
United  States.^  No  evidence  has,  however,  been  presented  that 
any  considerable  number  of  such  agreements  have  ever  been  in 
existence  nor  that  their  effect  was  general.  The  Porto  Rican 
agreement  was  possible  because  the  trade  of  the  United  States 
with  that  island  is  "coastwise"  trade  and  is  not  open  to  the  com- 
petition of  foreign  vessels. 

Prevalence  of  Ocean  Line  Conferences 

It  is  in  the  ocean  line  business  that  cooperation  has  displaced 
unrestricted  competition.  The  number  of  lines  is  relatively  small, 
their  invested   capital   is   relatively  large,  they  usually  operate 

'J.  R.  Smith,  The  Ocean  Carrier,  243. 

^  House  Committee  on  the  Merchant  Marine  and  Fisheries,  Proceed- 
ings in  the  Investigation  of  Shipping  Combinations,  I,  p.  701. 


58         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

over  definite  routes  and  at  a  limited  number  of  ports,  and  much 
of  their  traffic  consists  of  high-grade  commodities,  general 
cargo,  express  goods,  mail  and  passengers,  from  the  carriage 
of  which  the  tramps  are  ordinarily  excluded.  Conferences, 
agreements  and  pools  have  become  general  in  the  ocean  line 
traffic  because  their  organization  and  maintenance  are  less  diffi- 
cult than  in  charter  traffic,  and  because  the  competition  between 
ocean  lines,  if  unrestricted,  is  likely  to  become  so  intense  and 
persistent  that  their  successful  and  profitable  management  prac- 
tically requires  them  to  enter  into  arrangements  regulating  their 
interrelations.  As  was  stated  in  the  Report  on  Steamship  Agree- 
ments and  Affiliations  in  the  American  Foreign  and  Domestic 
Trade,'^  made  by  Professor  S.  S.  Pluebner  to  the  House  Com- 
mittee on  the  Merchant  Marine  and  Fisheries, 

as  regards  nearly  every  foreign  trade  route,  practically  all  the  established 
lines  operating  to  and  from  American  ports  work  in  harmonious 
cooperation,  either  through  written  or  oral  agreements,  conference  ar- 
rangements, or  gentlemen's  understandings.  The  few  instances  where 
two  or  more  lines  serve  the  same  route  and  have  denied  the  existence  of 
written  or  oral  agreements  for  the  regulation  of  the  trade,  are  exceptions 
and  not  the  rule. 

A  report  on  Shipping  Rings,  made  in  1909  by  a  British  Royal 
Commission,  showed  that  line  conferences  and  agreements  are 
similarly  almost  universal  in  the  international  trade  of  foreign 
countries. 

The  European  War  has  resulted  in  the  disruption  of  some 
of  the  conferences  and  agreements  specifically  referred  to  in  the 
above-mentioned  government  reports.  Many,  however,  were 
doubtless  in  effect  even  during  war  conditions,  and  there  is  no 
likelihood  that  the  war  has  permanently  altered  the  need  of  the 
ocean  lines  to  cooperate  in  the  future. 

Organization  of  Ocean  Line  Conferences 

The  organizations  through  which  the  lines  administer  their 
agreements,  pools  or  understandings  are  known  as  "conferences." 
They  may  be  informal  gatherings  or  intermittent,  irregular 
meetings,  at  which  rates,  sailings  or  other  matters  of.  mutual 
interest  are  arranged.  There  may  be  nothing  but  an  informal 
understanding  that  the  traffic  officials  of  one  line  will  consult 
those  of  another  whenever  any  rate  changes  are  contemplated, 

*  Proceedings  in  the  Investigation  of  Shipping  Combinations,  IV,  p.  281. 


RATE  AND  TRAFFIC  AGREEMENTS        59 

or  that  a  weaker  line  will  follow  the  rates  established  by  a 
stronger  line.  Conferences  may,  however,  be  formal  organiza- 
tions with  permanent  officers,  committees,  regular  or  special 
meetings,  rules,  and  penalties.  The  Mediterranean  Westbound 
Freight  Traffic  Agreement,  for  example,  is  administered  by  a 
general  secretary  and  an  assistant  secretary,  a  board  of  arbitra- 
tors, and  a  convention  or  committee  of  line  delegates. 

The  general  duties  and  powers  of  the  secretary  and  assistant 
secretary  of  the  Mediterranean  Conference  are:^ 

1.  To  receive  the  statistical  statements  and  manifests,  and  to  examine 
them  and  the  accounts,  for  which  purpose  they  have  access  to  the  freight 
offices  of  the  lines  and  of  the  agents,  where  they  may  examine  books, 
manifests,  correspondence,  etc. 

2.  To  communicate  the  statistics  and  accounts  to  the  lines  and  act  as 
mediator  in  general  in  the  transactions  between  the  lines. 

3.  To  control  the  freight  rates,  commissions,  and  rebates,  and  to  see 
that  the  lines  receive  regularly  and  at  the  same  time  all  necessary  state- 
ments. 

4.  To  collect  the  payment  of  penalties  and  effect  compensation  accounts. 

5.  To  call  meetings  of  the  lines  and  to  keep  minutes  of  such  meetings. 

6.  To  use  every  exertion  to  settle  difficulties  between  the  lines  in  an 
amicable  fashion. 

The  board  of  three  arbitrators  is  empowered  to  settle  any 
disputes  that  may  arise  among  members.  It  is  appointed  each 
time  a  dispute  arises  upon  appeal  of  the  parties  involved ;  one 
arbitrator  is  appointed  by  each  disputant,  and  these  in  turn 
select  as  umpire  one  of  three  persons  named  in  the  Mediter- 
ranean Westbound  Freight  Traffic  Agreement.  Should  either 
party  fail  to  appoint  an  arbitrator  within  fourteen  days  after 
notice  is  given  by  the  general  secretary,  the  one  appointed  by  the 
other  party  shall  have  full  power  to  proceed  with  the  case.  The 
conference  delegates  of  the  lines  have  supreme  legislative  powers. 
They  meet  at  regular  or  special  meetings  called  by  the  General 
Secretary  to  make  the  underlying  agreements  or  the  arrange- 
ments that  bind  the  conference  lines.  The  expenses  incurred 
are  divided  equally  between  the  two  groups  of  lines  that  are 
members  of  the  conference.®     Many  of  the  formal  ocean  con- 

°W.  H.  S.  Stevens,  "The  Administration  and  Enforcement  of  Steam- 
ship Conferences  and  Agreements,"  in  The  Annals  of  the  American 
Academy  of  Political  and  Social  Science,  September,  1914,  p.   136. 

'The  Mediterranean  Westbound  Freight  Traffic  Agreement  was 
entered  by  two  groups  of  lines:  (1)  The  six  Italian  lines — the  Navi- 
gazione  Generale  Italiana,  Italia,  Veloce,  Lloyd  Italiano,  Lloyd  Sabaudo, 
and  Sicula  Americana;  and  (2)  four  British  and  German  lines — the 
Anchor,  Hamburg-American,  North  German  Lloyd,  and  White  Star. 


60         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

ferences  do  not  have  the  elaborate  administrative  machinery  and 
rules  of  the  Mediterranean  Conference,  but  nevertheless  have  a 
definite  organization. 

In  order  to  guarantee  good  faith  each  member  of  a  confer- 
ence is  in  many  instances  required  to  deposit  a  stipulated  sum, 
to  be  forfeited  in  case  it  in  any  way  assists  a  non-conference 
line,  or  itself  establishes  a  new  service  that  will  interfere  with 
the  conference  lines.  It  is  also  a  common  conference  rule  that 
new  lines  may  not  be  admitted  to  membership  except  by  unani- 
mous consent.  Different  conference  lines  may,  moreover,  be  in- 
terrelated by  specific  agreement,  or  a  group  of  conference  lines 
may  enter  into  an  agreement  with  a  line  that  is  not  a  member 
of  their  conference.  The  N.  D.  L.  V.  lines  have  a  passenger 
agreement ''  "L"  with  the  American  Line  and  the  Compagnie 
Generale  Transatlantique,  and  other  sub-agreements,  known  as 
agreements  "G,"  "J,"  and  "N,"  as  is  shown  in  Chart  No.  VI. 
The  subsidiary  agreements  of  the  Mediterranean  Conference 
lines  listed  in  the  diagram  are  further  examples  of  such  inter- 
relationship. 

The  conference  agreements  and  arrangements  of  the  ocean 
lines  differ  greatly  in  their  details,  but  the  unmistakable  pur- 
pose of  all  is  the  control  of  competition.  They  may,  therefore, 
be  divided  into  two  groups :  ( 1 )  those  designed  to  control  the 
competition  between  conference  lines,  and  (2)  those  aiming  to 
control  or  combat  the  competition  of  non-conference  ocean 
carriers. 

Types  of  Ocean  Line  Rate  Agreements 

The  competition  between  conference  lines  is  frequently  sub- 
jected to  the  restricting  influences  of  fixed,  minimum  or  differen- 
tial agreements.  A  fixed  rate  agreement  is  one  that  specifies 
the  actual  or  absolute  freight  rate  or  passenger  fare  that  is 
charged  by  a  certain  group  of  conference  lines,  all  charges  to  be 
subject  to  the  mutual  consent  of  all  members.  Such,  for  example, 
is  the  practice  under  the  Mediterranean  Westbound  Traffic 
Agreement  referred  to  above.  All  the  lines,  with  the  exception 
of  the   Fabre   Line,   engaged  in  the  westbound   freight  traffic 

*  The  N.  D.  L.  V.  conference  (Nord-Atlantischer  Dampfer  Linien 
Verband)  includes  the  Hamburpf-American,  North  German  Lloyd  Line, 
Wilson  Line,  and  the  Scandinavian-American  Line. 


COHPIJDICJ 

iii:li:;i;r''^"!'" 

"'"rrE. 

RATE  AND  TRAFFIC  AGREEMENTS        61 

between  Italy  and  the  United  States,  agreed  to  charge  the  estab- 
lished rates  subject  to  the  steamship  agency  commission  as  pre- 
scribed in  the  agreement  and  to  deferred  rebates  not  exceeding 
10  per  cent,  of  the  freight  paid  by  shippers  who  agree  to  ship 
exclusively  via  the  conference  lines.  Fixed  freight  rates  are 
also  established  in  the  so-called  "Baltic  Pool"  agreement,  to 
which  the  four  lines  engaged  in  the  trade  between  Baltic  ports 
and  the  North  Atlantic  ports  of  the  United  States  were  parties 
before  the  European  War  broke  out.^  The  N.  D.  L.  V.  West- 
bound Freight  Agreement,  fixing  the  freight  rates  from  the 
ports  of  the  north  German  seaboard,  Holland  and  Belgium  to 
the  ports  of  the  United  States,  also  prescribed  fixed  rates  for 
general  cargo,  although  certain  heavy  commodities  could  be  car- 
ried at  rates  not  below  a  prescribed  minimum.  Fixed  rates  are 
likewise  prescribed  in  the  agreements  or  understandings  that 
govern  the  lines  operating  from  New  York  to  Australia,  from 
New  York  to  South,  East  and  West  Africa,  from  New  York  to 
Asia  via  Suez  and  return,  from  New  York  to  most  South  Ameri- 
can ports  and  return,  and  from  Asia  to  the  Pacific  coast  ports 
of  the  United  States.^ 

Minimum  rate  agreements  are  more  numerous  than  fixed  rate 
agreements,  particularly  in  the  freight  and  passenger  business  of 
the  North  Atlantic  route.  The  numerous  North  Atlantic  passen- 
ger conferences  (charted  in  Chart  No.  VI)  that  governed 
the  passenger  business  before  the  outbreak  of  the  war  in  Europe 
established  minimum  first  and  second-class  fares  for  each  con- 
ference steamer,  and  a  general  minimum  rate  for  steerage  traffic. 
The  steerage  traffic  was  pooled,  however,  and  any  lines  that 
obtained  more  than  their  allotment  of  steerage  passengers  were 
required  to  advance  their  steerage  rates  regardless  of  the  pre- 
scribed minimum,  so  as  to  divert  traffic  to  the  short-tonnage 
lines.  In  the  eastbound  and  westbound  freight  traffic  between 
American  North  Atlantic  ports  and  the  United  Kingdom,  and  in 
the  eastbound  trade  from  New  York  to  Mediterranean  ports,  the 
lines  are  also  governed  by  minimum  rate  agreements.  The  lines 
meet  in  conference  and  notify  each  other  of  their  minimum  rates 
upon  a  large  selected  list  of  articles,  the  rates  thus  filed  being 

*The  Hamburg-American  Line,  North  German  Lloyd  Line,  Wilson 
Line,  and  Scandinavian-American  Line. 

*  House  Committee  on  the  Merchant  Marine  and  Fisheries,  Proceed- 
ings in  the  Investigation  of  Shipping  Combinations,  IV,  p.  282. 


62         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

subject  to  change  only  after  an  agreed  period  of  notice  varying 
from  30  to  60  days.  The  lines  agree  not  to  take  freight  (certain 
bulk  articles  being  excepted)  below  the  agreed  minimum  rates, 
but  any  line  can  serve  notice  that  at  the  end  of  the  designated 
period  it  will  change  these  rates. ^° 

The  various  North  Atlantic-European  freight  rate  agreements 
are  charted  in  Chart  No.  VII. 

When  the  service  of  particular  lines  is  indirect  or  slower 
than  that  of  others  serving  the  same  ports,  the  conference  lines 
sometimes  agree  upon  differential  rates  so  as  to  enable  the 
former  to  obtain  a  fair  share  of  available  traffic.  Some  of  the 
North  Atlantic  passenger  agreements,  for  example,  provide  for 
dififerential  fares  for  first  and  second-class  passengers  carried 
on  certain  steamers;  and  the  Royal  Dutch  West  India  Mail 
Line  is  permitted  to  charge  freight  rates  5  or  10  per  cent,  under 
those  of  the  Red  "D"  Line  on  freight  shipments  between  New 
York  and  Venezuelan  ports. 

Ocean  Line  Pools 

Many  ocean  lines  go  further  than  to  agree  upon  their  rates. 
Some  of  them  enter  into  "pooling"  arrangements  so  as  to  de- 
stroy the  incentive  of  any  of  the  conference  lines  to  undercut 
the  agreed  rates.  The  conference  agreements  may  provide  either 
for  a  traffic  pool  or  a  money  pool,  although  in  practice  the  two 
are  so  closely  allied  that  the  one  merges  into  the  other.  Their 
purpose  in  either  case  is  to  guarantee  that  each  conference  line 
will  obtain  a  fair  share  of  all  freight  or  passenger  monies  in- 
cluded in  the  agreement,  and  that  each  will  carry  a  fair  amount 
of  traffic.  The  North  Atlantic  passenger  line  conferences  operate 
typical  traffic  pools.  In  the  N.  D.  L.  V.  agreement  of  1892,  for 
example,  it  was  provided  that  the  total  number  of  steerage 
passengers  carried  from  European  ports  north  of  Cadiz  or  from 
British  ports  to  or  via  the  United  States  and  Canada  shall  be 
divided  according  to  the  following  percentages: 

The  North  German  Lloyd  Line,  39.7  per  cent. 
The  Hamburg-American  Line,  24.8  per  cent. 
The  Red  Star  Line,  13.5  per  cent. 
The  Holland-America  Line,  8  per  cent. 
For  the  British  lines,  14  per  cent. 

*"  House  Committee  on  the  Merchant  Marine  and  Fisheries,  Proceedings 
in  the  Investigation  of  Shipping  Combinations,  IV,  p.  282. 


RATE  AND  TRAFFIC  AGREEMENTS  63 

In  1909,  when  the  agreement  was  renewed,  the  proportions  of 
the  four  N.  D.  L.  V.  Hnes  were  changed  so  that  the  westbound 
steerage  passengers  carried  by  them  were  divided  as  follows: 

The  North  German  Lloyd  Line,  42.46  per  cent. 
The  Hamburg-American  Line,  31.38  per  cent. 
The  Red  Star  Line,  15.55  per  cent. 
The  Holland-America  Line,  10.61  per  cent. 

This  traffic  agreement  required  each  line  to  render  statements 
of  the  number  of  passengers  carried  and  the  amount  of  tonnage 
employed  three  times  each  month  to  the  secretary  of  the  con- 
ference, who  then  prepared  monthly  accounts  showing  the  posi- 
tion of  each  line.  If  the  tonnage  employed  by  a  given  line  was 
increased  the  line  was  entitled  to  a  stipulated  increase  per  1,000 
tons  in  the  number  of  steerage  passengers  carried,  and  if  its 
tonnage  declined,  its  allotted  share  similarly  decreased.  If  the 
number  of  steerage  passengers  actually  carried  by  a  line  was 
above  or  below  its  allotted  percentage  of  total  steerage  business, 
it  could,  upon  notification  of  the  secretary,  take  measures  to 
bring  about  a  correct  adjustment;  and  if  at_the  end  of  any  year 
the  annual  steerage  traffic  of  a  given  line  exceeded  its  propor- 
tion it  was  required  to  pay  to  the  lines  that  did  not  reach  their 
allotted  quota  an  agreed  amount  or  so-called  "compensation 
price"  per  excess  steerage  passenger. 

Most  steamship  line  pools,  however,  are  essentially  money 
pools.  AT  money  pool  may  include  merely  the  freight  resulting 
from  a  single  commodity  or  classification  of  articles,  as  in  the 
case  of  the  "Baltic  Pool,"  previously  mentioned,  in  which  the 
freight  received  from  certain  commodities  carried  between  the 
Baltic  ports  and  the  American  ports  of  the  North  Atlantic  are 
distributed  in  accordance  with  agreed  percentages.  The  total 
freight  monies  of  certain  conference  lines  may,  however,  be 
pooled,  as  was  done  under  the  N.  D.  L.  V.  westbound  freight 
agreement.  A  more  common  arrangement,  especially  in  long- 
distance trade,  is  to  pool  the  net  freight  revenues  resulting  from 
the  carriage  of  all  freight  cargoes,  i.e.,  certain  expenses  incurred 
in  the  operation  of  the  steamers,  transshipment  cost,  stevedores' 
wages,  agency  commissions,  etc.,  are  deducted  from  gross  freights 
and  only  the  remainder  is  divided  among  the  conference  lines 
according  to  agreed  proportions. 


64         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Examples  of  such  pools  are  the  Mediterranean  westbound 
freight  pool,  mentioned  above,  the  Calcutta-Pacific  Pool,^^  ap- 
plicable to  freight  shipped  from  Calcutta  to  American  Pacific 
coast  ports,  and  the  American  Asiatic  pools,^-  applicable  to 
the  eastbound  and  westbound  freight  shipments  between  the 
Far  East  and  the  Atlantic  ports  of  the  United  States  via  the 
Suez  Canal.  The  specific  deductions  made  in  order  to  arrive  at 
net  freight  vary  in  the  different  pooling  agreements.  In  some 
pooling  agreements,  moreover,  only  a  portion  of  the  freight 
money  is  pooled.  The  Hamburg- American  and  the  Royal  Mail 
lines  pooled  50  per  cent,  of  their  earnings  (except  those  derived 
from  certain  special  commodities)  in  the  trade  between  New 
York  and  Jamaica,  Colon  and  Colombian  ports;  and  the  con- 
ference Hnes  "  in  the  New  York-West  African  trades  pooled 
75  per  cent,  of  both  their  freight  and  passenger  receipts. 

The  percentages  agreed  upon  are  usually  allotted  to  the  in- 
dividual lines  of  a  conference,  but  they  may  be  allotted  to  groups 
of  lines.  In  the  New  York- West  African  pool  the  money  is 
divided  equally  between  two  groups,  comprising  the  British  and 
German  conference  lines,  respectively;  and  in  the  Mediterranean 
westbound  freight  pool  there  is  an  equal  division  between  a  group 
of  Italian  lines  and  another  group  of  British  and  German 
lines. 

Some  pools  are  traffic  pools  as  well  as  money  pools,  "the  lines 
aiming  to  divide  both  the  volume  of  freight  and  the  freight  money 
in  the  same  percentage  for  both."  ^*  In  the  "Baltic  Pool,"  for 
example,  each  of  the  four  conference  lines  was  obliged  to  carry 
a  volume  of  freight  no  greater  than  the  percentage  of  revenue 
allotted  to  it ;  if  it  over-carried,  it  would,  at  the  end  of  each  period 
of  six  months,  pay  the  difference  to  the  under-carried  lines  in 

"  Bank  Line,  Canadian  Pacific  Railway  Company's  Steamship  Line, 
China  Mutual  Steam  Navigation  Company,  Great  Northern  Steamship 
Company,  Ocean  Steamship  Company,  Nippon  Yusen  Kaisha,  Osaka 
Shosen  Kaisha,  Tpyo  Kisen  Kaisha,  Pacific  Mail  Steamship  Company, 
Indo-China  Steam  Navigation  Company,  and  the  Apcar  Line. 

"  American  and  Oriental  Line,  Barber  and  Dodwell  Lines,  United 
States  and  China-Japan  Steamship  Company,  American-Asiatic  Steam- 
ship Company,  Anglo-American  Oil  Company,  and  American  and  Man- 
churian  Steamship  Line. 

"  Woermann  Line,  Hamburg-American  Line,  Hamburg-Bremen-African 
Line,  African  Steamship  Company,  British  and  African  Steam  Navigation 
Company,  Elder  Line,  and  Elder,  Dempster  &  Co. 

"  W.  G.  Sickel,  "Pooling  Agreements,"  in  The  Annals  of  the  Amer- 
ican Academy  of  Political  and  Social  Science,  p.  149,  September,  1914. 


RATE  AND  TRAFFIC  AGREEMENTS        65 

cash.  When  necessary,  a  flow  of  traffic  from  one  Hne  to  another 
was  forced  by  readjusting  their  rates  until  the  full  percentages 
were  secured. 

Other  Methods  of  Controlling  Competition  Between  Con- 
ference Lines 

The  traffic  pool,  which  is  really  a  method  of  apportioning 
traffic  between  conference  lines,  differs  somev»?hat  from  a  traffic 
agreement  which  limits  the  volume  of  freight  that  certain  lines 
may  carry.  The  White  Star  Line,  which  operates  an  indirect 
service  from  New  York  to  Australian  ports  by  way  of  Liverpool, 
for  example,  has  an  oral  understanding  with  the  through  direct 
lines  ^^  that  it  will  not  carry  more  than  one-quarter  of  the  total 
measurement  cargo  carried  to  Australia  by  the  four  lines  com- 
bined. The  White  Star  Line  does  not,  however,  pool  its  traffic 
or  earnings  with  the  direct  lines,  nor  is  it  hindered  in  the  quota- 
tion of  its  rates. 

The  traffic  of  conference  lines  is  frequently  apportioned  in 
a  measure  by  agreements  restricting  the  number  of  sailings  of 
each  line.  In  the  American-Brazilian  trade,  for  example,  before 
the  outbreak  of  the  European  War,  the  Lamport  and  Holt  Line, 
the  Prince  Line  and  the  joint  service  of  the  Hamburg- American 
and  Hamburg-South  American  lines  were  each  allowed  24  sail- 
ings per  year  from  New  York ;  and  the  sailings  from  Brazil  of 
the  Lamport  and  Holt  Line  were  unrestricted,  while  those  of  the 
Prince  Line  were  limited  to  24  sailings  to  New  York  and  12  to 
New  Orleans.  The  German  lines  were  limited  to  24  sailings  to 
New  York  per  annum,  and  they  agreed  to  withdraw  entirely  from 
the  Brazil-New  Orleans  trade.  The  previously  mentioned  New 
York-Orient  agreement  of  the  lines  operating  via  the  Suez  Canal 
also  limits  the  sailings  of  the  conference  lines,  and  provides  for 
mutual  arrangements  as  to  the  order  in  which  their  vessels  may 
take  the  berth. 

A  variation  from  this  method  of  apportioning  traffic  is  fol- 
lowed by  the  direct  lines  in  the  trade  from  New  York  to  Aus- 
tralia. Their  agreement  stipulates  the  vessel  tonnage  that  each 
line  may  provide.     The  American  and  Australian  S.S.  Line  is 

"American  and  Australian  Steamship  Line,  United  Tyser  Line,  and 
United  States  and  Australasia  Steamship  Company. 


66         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

allotted  42j'<  per  cent,  of  the  tonnage,  the  United  Tyser  Line  35 
per  cent.,  and  the  United  States  and  Australasia  S.S.  Co.  22j^ 
per  cent.  In  the  outbound  trade  from  the  United  States  to  South 
and  East  Africa  the  conference  lines  similarly  agreed  that  the 
Union  Castle  Line  may  provide  two-sevenths  of  the  tonnage,  and 
the  Bucknall  S.S.  Line,  the  Clan  Line,  the  Hansa  Line,  the 
Houston  Line,  the  Prince  Line,  one-seventh  each. 

The  traffic  may,  moreover,  be  apportioned  by  allotting  the 
ports  of  sailings.  Thus  the  Hamburg-American  and  North  Ger- 
man Lloyd  lines  in  the  trade  from  all  American  ports  north  of 
Savannah  allot  to  each  other  respectively  the  ports  of  Hamburg 
and  Bremen,  The  N.  D.  L.  V.  conference  similarly  reserves 
certain  European  ports  to  each  of  its  four  members.  The  New 
York  and  Cuba  Mail  Line  and  the  Compania  Maritima  Cubana 
have  apportioned  Cuban  ports  in  the  Cuba-New  York  trade ;  the 
Royal  Mail  Line,  in  its  agreement  with  the  Hamburg-American 
Line,  agreed  not  to  extend  its  American  service  to  Santo  Marto 
vand  the  ports  of  Haiti ;  and  the  Russian  East  Asiatic  Line  agrees 
to  confine  its  American  trade  to  Russian  ports  when  possible, 
and  to  maintain  the  rates  of  the  Holland-America  Line  in  case  it 
is  obliged  to  call  at  Rotterdam." 

Methods  of  Controlling  Competition  of  Non-Conference 

Lines 

One  of  the  most  effective  measures  taken  by  some  of  the 
conference  lines  to  protect  themselves  against  the  competition 
of  outside,  non-conference  lines  is  the  deferred  rebate  system. 
Shippers  are  promised  a  rebate  of  5  or  10  per  cent,  of  their  freight 
payments  at  the  end  of  designated  periods  of  three,  six  or  twelve 
months,  provided  that  meanwhile  they  have  given  their  exclusive 
support  to  the  conference  lines.  The  system  jsnow  illegal  under 
the  Shipping  Act  of  September,  1916,  so  far  as  the  trade  of  the 
United  States  is  concerned,  but  was  especially  common  in  the 
long-distance  trades,  such  as  the  trade  at  South  American  and 
Oriental  ports.  Deferred  rebates  may  be  paid  even  by  lines  that 
are  not  members  of  a  conference. 

The  use  of  "fighting  ships,"  or  collective  competition,  has  also 

"House  Committee  on  the  Merchant  Marine  and  Fisheries,  Proceed- 
ings in  the  Investigation  of  Shipping  Combinations,  IV,  p.  284. 


RATE  AND  TRAFFIC  AGREEMENTS        dl 

been  utilized  as  a  means  of  protection.  There  have  been  instances 
where,  in  order  to  destroy  the  competition  of  non-conference 
lines,  certain_st£aiiiers_were  set  aside  to  undercut  the  rates  of 
outside  lines  and  .to_  sail  on  the  same  days 'and  between  exactly 
the  same  ports.  Sometimes  a  separate  company  was  incorpor- 
ated to  operate  the  fighting  ships,  the  future  use  of  which  in  the 
American  trade  is  also  prohjbite.d  by  the  Shipping  Act  of  Sep- 
tember, 1916.  '~'^~"      ■ 

Conference  lines,  either  individually  or  as  a  group,  may  also 
make  contracts  with  shippers,  whereby  in  return  for  reduced 
rates  and  an  agreed  service  the  shippers  agree  to  dispatch  via 
the  conference  lines  their  entire  shipments  to  certain  ports  dur- 
ing agreed  periods.  The  privilege  of  securing  such  contracts 
is  usually  open  to  all  shippers  alike,  but  has  at  times  been  a  source 
of  discrimination.  Contracts  have  been  made  with  large  shippers 
for  all  or  a  part  of  their  freight  at  lower  rates  than  those  quoted 
on  smaller  quantities  of  similar  commodities.  The  Shipping  Act, 
however,  prohibits  unfair  discriminations  in  the  future.  Numer- 
ous preferential  agreements  have  also  been  made  with  various 
American  railroads. 

Complaints  Against  Conferences 

The  conferences,  agreements  and  understandings  of  ocean  lines 
have  sometimes  been  complained  of  on  the  grounds  that  their 
monopolistic  power,  even  though  not  always  complete,  is  liable 
to  abuse.  They  have  at  times  prevented  the  establishment  of  new 
lines  and  crushed  fiori-conference  lines  ;  or  they  may  have  exerted 
a  certain  degree  of  arbitrary  power  over  rates,  dominated  ship- 
pers, been  indifferent  as  to  the  landing  of  freight  in  proper  con- 
dition and  slow  to  settle  claims.  They  have  sometimes  granted 
special  rates  and  accommodations  to  large  shippers,  and  refused 
to  publish  tariffs  and  classifications.  Their  secrecy,  and  question- 
able practice  of  paying  deferred  rebates,  and  their  occasional  op- 
eration of  fighting  ships  have  especially  been  sources  of  com- 
plaint. There  is  nothing  inherent  in  the  complaints  mentioned 
that  cannot  be  remedied  by  proper  remedial  legislation.  Indeed, 
the  most  objectionable  features  of  ocean  conferences  and  agree- 
ments have  been  prohibited  by  the  Shipping  Act  of  September, 
1916,  and  their  entire  administration  has  been  subjected  to  super- 


68         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

vision  by  the  United  States  Shipping  Board.  The  advantages  of 
ocean  conferences  and  agreements  both  to  the  lines  and  to  the 
shippers  need  not  be  sacrificed  in  order  to  eliminate  their  dis- 
advantages. 

Advantages  of  Conferences 

Arbitrary  rate  discrimination  by  ocean  conferences  is  the  ex- 
ception. For  every  such  instance  there  are  many  in  which  the 
conferences,  by  controlling  unrestricted  competition,  have  made 
the  rates  to  all  shippers  at  a  given  port  more  uniform.  For 
every  arbitrary  discrimination  between  countries  there  are  many 
instances  in  which  conferences  have  maintained  the  rates  from 
the  United  States  to  foreign  markets  on  a  parity  with  those  from 
other  countries.  The  arbitrary  increase  of  rates  by  conferences 
is,  likewise,  exceptional,  because  they  cannot  ordinarily  disregard 
the  competitive  forces  mentioned  in  the  preceding  chapter.  All 
such  arbitrary  action  could  be  further  restricted  by  government 
supervision.  It  should  be  remembered  that  there  is  no  more 
prolific  cause  of  discrimination  than  unrestricted  competition. 

Ocean  conferences,  moreover,  benefit  both  the  conference  lines 
and  the  shippers  by  stabilizing  rates.  The  merchant  engaged  in 
international  trade  desires  an  adequate  service  at  rates  that  are 
reasonable  and  fairly  stable;  fluctuating  rates  seriously  inter- 
fere with  trade,  whether  it  be  domestic  or  international.  Sudden 
and  large  changes,  often  characteristic  of  ocean  rates,  may  in- 
terfere with  the  development  of  commerce  as  seriously  as  the 
unstable  competitive  rates  by  rail  in  the  United  States  have  in 
times  past  hampered  the  industrial  development  of  different  sec- 
tions of  the  country.  Reasonable  stability  of  rates  reduces  the 
speculative  uncertainty  of  shipping,  it  facilitates  the  calculation 
of  net  prices,  it  reduces  the  complaints  of  foreign  customers, 
steadies  the  flow  of  international  trade,  and  makes  it  possible  for 
both  shippers  and  carriers  to  enter  more  readily  into  forward 
contracts  for  the  carriage  of  freight. 

The  chief  benefit  of  ocean  conferences  to  shippers,  however, 
is  in  the  improved  service  which  they  make  possible.  Confer- 
ences reduce  the  cost  of  the  line  service,  and  while  this  increases 
the  profits  of  the  line,  it  also  makes  possible  a  lower  level  of  rates 
and  a  higher  standard  of  service.    For  eveiy  instance  of  indiffer- 


RATE  AND  TRAFFIC  AGREEMENTS        69 

ence  to  the  welfare  of  shippers,  there  are  many  in  which  ocean 
conferences  have  promoted  regularity  of  service,  a  better  dis- 
tribution of  sailings,  and  ultimately  the  operation  of  more  and 
better  vessels  than  the  lines  would  have  dared  to  provide  if  in- 
terline rate  competition  were  absolutely  unrestricted.  The  in- 
stances in  which  conferences  have  prevented  a  new  line  from 
entering  a  trade  or  have  crushed  a  non-conference  line  should 
be  balanced  against  the  large  number  of  weaker  conference  lines 
which  would  probably  be  crushed  or  would  suffer  severely  if  they 
engaged  in  uncontrolled  competition  with  their  stronger  fellow 
members.  Against  the  scattering  instances  where  conferences 
may  have  discriminated  unfairly  against  certain  ports  should  be 
balanced  their  ability  to  distribute  their  cost  of  service  more  eco- 
nomically so  as  to  increase  the  number  of  sailings  at  the  smaller 
ports  where  competitive  services  would  be  unprofitable.  On 
well-established  trade  routes  where  the  flow  of  traffic  is  heavy 
in  volume  it  should,  moreover,  be  borne  in  mind  that  most  of  the 
conferences  have  to  do  almost  entirely  with  rates  and  earnings. 
Nowhere  in  the  world  has  such  progress  in  ship  construction  and 
service  improvement  been  made  as  in  the  North  Atlantic  pas- 
senger business,  and  yet  the  great  lines  that  compete  so  keenly 
as  regards  the  kind  of  service  rendered  are  parties  to  rate  agree- 
ments and  pooling  arrangements.  Conference  control  over  rate 
competition  so  enhances  the  security  of  the  capital  invested  in 
these  ocean  lines  as  to  render  it  easier  for  them  constantly  to  im- 
prove their  facilities  and  yield  to  the  demands  of  the  traveling 
public. 

These  benefits  to  the  shipper  and  the  ocean  traveler  may,  how- 
ever, in  individual  instances,  be  largely  nullified  by  the  steamship 
conferences,  if  they  follow  a  policy  of  restricting  the  development 
of  the  service,  and  a  policy  of  high  rates  and  small  volume  of 
business  instead  of  low  rates  and  maximum  traffic.  Instances 
are  not  wanting  of  arbitrary  action  on  the  part  of  the  steamship 
organizations  to  prevent  outside  lines  from  interfering  with  the 
established  traffic  of  the  associated  companies,  or  to  become 
members  of  their  conferences,  and  shippers  have  sometimes  been 
penalized  for  patronizing  lines  not  belonging  to  the  combination. 
The  tendency  of  those  possessing  exclusive  privileges  is  to  seek 
vigorously  to  retain  such  privileges  against  outside  interference; 


70         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

accordingly,  it  is  clear  that  conferences  among  ocean  carriers, 
which  seem  to  be  rendered  necessary  by  the  severity  of  unre- 
stricted competition,  should  be  carefully  supervised  and  regulated 
by  governmental  authority,  as  is  required  by  the  Shipping  Act  of 
September,  1916. 


CHAPTER  VI 
OCEAN  FREIGHT  FORWARDING  AND  FREIGHT  BROKERAGE 

A  DISCUSSION  of  the  traffic  organization  of  ocean  shipping 
would  be  grossly  incomplete  without  mention  of  ocean  freight 
forwarders  and  freight  brokers.  Ocean  freight  forwarding, 
sharplydefinedj^  refers  to  the  actual  forwarding  and  handling  of 
shipments  by  forwarders  acting  as  agents  for  ocean  shippers, 
and  ocean  freight  brokerage  similarly  defined  refers  to  the  book- 
ing of  Cargoes  or  the  engaging  of  freight  by  freight  brokers,  but 
in  practice  these  Two  functions  are  so  frequently  performed  by 
the  same  concerns  that  this  distinction  is  not  always  maintained. 
The  many  ocean  freight  forwarders  found  at  all  large  ocean 
ports  and  at  some  interior  points  perform  a  forwarding  and 
also  a  freight  brokerage  business,  and  their  profits  are  received 
from  both. 

Nature  of  Services  Performed 

Acting  as  freight  brokers  these  ocean  freight  forwarders  assist 
the  steamship  companies  in  securing  freight.  There  has  some- 
times been  a  tendency  on  the  part  of  the  ocean  carriers,  par- 
ticularly during  the  war  when  there  was  no  difficulty  in  obtaining 
cargoes,  to  prefer  to  book  cargoes  without  the  medium  of  bro- 
kers, and  to  refuse  to  pay  the  usual  brokerage,  but  in  normal 
times,  when  cargoes  are  not  readily  at  hand,  many  steamship 
lines  have  regarded  the  services  of  freight  brokers  as  of  value 
to  them.  The  economic  value  of  the  ocean  freight  brokerage 
business  does  not,  however,  end  with  the  securing  of  freight  for 
the  steamship  lines.  Many  manufacturers  and  shippers,  par- 
ticularly those  located  in  the  interior,  depend  upon  ocean  freight 
forwarders  and  brokers  to  keep  them  fully  posted  on  ocean 
freights  and  services  and  to  engage  their  cargo  space  for  them. 
The  difficulty  of  obtaining  current  ocean  freight  rates  which  are 
subject  to  sudden  fluctuations,  and  of  engaging  space  was  con- 

71 


72        OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

sidercd  of  sufficient  value  by  many  shippers  during  war  condi- 
tions to  induce  them  to  pay  the  brokerage  fee  which  some  of  the 
steamship  lines  for  the  time  being  refused  to  pay,  or  would  pay 
only  to  such  forwarders  as  agreed  to  become  members  of  a  speci- 
fied freight  brokers'  association.  Importers  also  find  ocean 
freight  forwarders  and  brokers  a  convenient  source  of  informa- 
tion regarding  ocean  freights  on  imported  cargoes.  As  these  im- 
port freights  are  frequently  quoted  by  the  steamship  agents  at 
the  foreign  ports,  difficulty  is  at  times  experienced  in  obtaining 
information  from  the  steamship  agents  located  in  the  United 
States. 

When  actm^  as  ocean  freight  forwarders  these  concerns,  serv- 
ing as  agents  of  shippers  who  prefer  not  to  handle  their  export 
shipmeirfs  at  the  ports  of  export  and  beyond,  take  entire  charge 
of  an  export  shipment  from  point  of  origin  to  final  destination 
or  throughout  any  part  of  the  voyage  or  trip.  In  doing  so  they 
act  as  port  representatives  who  receive  the  shipments  consigned 
to  them,  make  the  necessary  arrangements  with  rail  and  ocean 
carriers,  have  the  shipment  carted  or  lightered,  see  that  it  gets 
aboard  the  vessel,  attend  to  the  preparation  of  the  shipping  docu- 
ments described  in  subsequent  chapters  and  any  trade  formali- 
ties that  may  arise  at  the  ports,  pay  freight  and  insurance  pre- 
miums if  so  instructed,  clear  cargoes  through  the  custom  house, 
and  generally  attend  to  the  transportation  and  shipping  services 
incident  to  an  export  or  import  transaction.  Under  war  condi- 
tions the  forwarders  have  also  attended  to  the  obtaining  of  rail- 
road shipping  authorities,  and  have  applied  for  or  obtained  in- 
formation regarding  export  licenses.  Whenever  it  becomes 
necessary  to  store  freight  after  arrival  at  the  port  they  make  ar- 
rangements for  storage.  They  frequently  act  not  only  as  rep- 
resentatives or  agents  at  the  port  of  export,  but  provide  a 
through  freight  service  including  delivery  at  inland  destina- 
tions in  foreign  countries. 

Ocean  freight  forwarders  may  also  perform  a  service  to  the 
shipper  when  they  quote  through  freight  rates  to  a  foreign  desti- 
nation. Railroad  companies  in  recent  years  have  only  in  ex- 
ceptional instances  quoted  through  rail-ocean  rates  from  interior 
points  in  the  United  States  to  foreign  ports,  and  ocean  freights 
in  the  foreign  trade  usually  apply  from  the  American  port  of 
export  to  the  foreign  port  of  entry.    Ocean  freight  forwarders, 


FREIGHT  FORWARDING  AND  FREIGHT  BROKERAGE    73 

however,  stand  ready  to  quote  a  freight  charge  that  will  carry 
the  export  shipment  through  to  interior  destinations  in  foreign 
countries.  Interior  destinations  to  which  they  will  not  quote 
through  rates  are  exceptional. 

They  are,  moreover,  in  a  position  to  offer  reduced  rates  op 
small  packages  which  if  shipped  directly  by  the  shipper  in  the 
ocean  freight  service  might  come  into  conflict  with  the  relatively 
high  minimum  freights  provided  for  in  the  bills  of  lading  of  many 
steamship  companies.  By  ccunbining  the  small  packages  of  a 
number  of  shippers,  freight  forwarders  may  quote  rates  on  pack- 
age freight  that  result  in  a  saving  to  the  individual  shippers  and 
at  the  same  time  yield  a  profit  to  the  forwarder.  Ocean  freight 
forwarders  when  handling  package  freight  are  performing  an 
international  express  service.  Several  of  the  regular  domestic 
express  companies, — the  American,  Adams  and  Wells-Fargo  & 
Company, — are  also  engaged  in  the  handling  of  international  ex- 
press goods.  They  do  in  fact  conduct  a  general  ocean  freight 
forwarding  business,  but  because  of  the  large  number  of  ex- 
press ofifices  maintained  by  them  throughout  the  country  they 
reach  a  large  number  of  shippers  with  small  express  packages. 

The  difference  between  carload  and  less  than  carload  railroad 
rates  or  the  privilege  of  mixing  freight  in  carload  lots  author- 
ized in  some  railroad  tariffs  also  enables  freight  forwarders  at 
times  to  forward  export  freight  from  interior  points  to  the  port 
of  export  at  a  saving  to  the  individual  shippers  of  less  than  car- 
load lots  and  a  profit  to  themselves.  Some  of  the  ocean  freight 
forwarders  have  established  offices  at  interior  points,  not  only 
to  reach Jnterior  exporters  more  directly,  but  also  to  consolidate 
shiprnents  into  carload  lots.  Especially  important  in  this  con- 
nection were  the  export  tariffs  of  the  transcontinental  railroads 
which  quote  not  only  export  class  rates  and  commodity  rates  on 
many  specified  commodities  to  Pacific  coast  ports  when  destined 
to  Oriental,  Australasian,  and  in  a  few  instances  to  Central  and 
South  American,  Mexican  and  Hawaiian  destinations,  but  also 
so-called  "all  commodities"  rates  applicable  to  all  but  certain 
excepted  export  commodities  when  routed  overland  in  straight 
or  mixed  carloads  having  a  minimum  carload  weight  of  thirty 
thousand  pounds.  Interior  forwarders  engaged  in  thus  consoli- 
dating or  bunching  less  than  carload  shipments  for  export  are 
engaged  in  a  railroad  forwarding  business  as  well  as  in  the  usual 


74         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

business  of  receiving  shipments  at  the  ports  and  forwarding 
them  to  foreign  destinations. 

Ocean  freight  forwarders  render  a  further  service  to  shippers 
in  case  the  latter  wish  freight  charges  to  be  collected  from  tlie 
consignee  at  destination,  although  ocean  carriers  insist  upon 
prepayment  of  freight.  An  ocean  freight  forwarder  may  for- 
ward shipments  on  a  collect  basis,  even  though  he  is  required 
to  prepay  the  freight  demanded  by  the  steamship  company,  thus 
carrying  the  sh|g2ej^untn_the  foreign  agent  of  the  forwarder.,has 
collected  the  freight  from  the  consignee  at  destination. 

They  also  endeavor  to  handle  goods  refused  by  the  consignee 
to  the  best  interests  of  the  export  shipper.  When  instnicted  by 
the  exporter  they  undertake  to  provide  the  marine  insurance  de- 
sired by  him,  thereby  relieving  him  of  the  necessity  of  himself  ob- 
taining it  from  marine  insurance  companies  or  underwriters. 

Some  of  them  assist  the  exporter  in  the  United  States  and 
foreign  consignees  abroad  in  financial  matters.  Shippers  may 
arrange  with  their  ocean  freight  forwarder  to  advance  the  in- 
voice price  of  their  shipments,  the  forwarder  then  collecting 
from  the  consignee  either  through  his  foreign  agent  at  destina- 
tion or  by  means  of  drafts  handled  through  the  regular  inter- 
national exchange  bankers  or  brokers. 

The  financial  work  of  the  domestic  express  companies  who 
conduct  a  foreign  express  and  forwarding  business  also  includes 
the  issue  of  travelers'  checks,  foreign  money  orders,  and  letters 
of  credit ;  the  transfer  of  funds  by  telegraph ;  and  the  operation 
of  a  "foreign  postal  remittance"  service  for  the  remittance  of 
money  to  persons  not  located  near  a  bank. 

Some  of  the  ocean  freight  forwarders  have  also  branched  out 
into  the  field  of  foreign  trade  as  distinct  from  shipping,  in  that 
they  ofifer  to  give  trade  information  useful  to  their  customers  in 
buying  or  selling  goods  abroad.  Some  have  gone  so  far  as  to 
act  in  the  capacity  of  foreign  purchasing  or  selling  agents. 

Business  Organization  of  Ocean  Freight  Forwarders 

The  business  organization  of  ocean  freight  forwarding  con- 
cerns is  subject  to  so  many  variations  that  it  is  impossible  to  con- 
struct a  single  organization  chart  that  conveys  a  comprehensive 
view  or  is  in  all  respects  typical.    Chart  No.  VIII  accompanying 


FREIGHT  FORWARDING  AND  FREIGHT  BROKERAGE    75 

this  chapter  will,  however,  convey  a  general  idea  of  how  many 
of  the  larger  concerns  are  organized  to  do  business.  The  or- 
ganization of  each  of  the  large  forwarding  companies  of  course 
varies  with  the  volume  of  business  handled,  the  extent  to  which 
they  specialize  in  shipments  to  particular  parts  of  the  world,  the 
kind  of  services  offered  and  the  differing  views  of  its  firm  mem- 
bers or  higher  officers  as  to  how  its  forces  should  be  effectively 
organized.  There  are  also  smaller  forwarding  concerns,  the  busi- 
ness organizations  of  which  are  less  extensive  than  that  indicated 
in  the  chart. 

The  main  office  of  most  of  the  ocean  freight  forwarders  is  lo- 
cated at  some  one  of  the  seaboard  ports,  the  larger  forwarders, 
howeverTTiavrhg^agents  or  branch  offices  at  some  of  the  other 
ports  so  as  to  facilitate  the  routing  of  inland  freight  through 
more  than  one  port  and  also  so  as  to  share  in  the  freight  origi- 
nating at  several  ports  of  export.  They  have,  moreover,  seen 
fit  to  establish  agents  or  branch  offices  at  various  interior  points 
at  which  much  export  freight  originates  so  as  to  get  into  closer 
touch  with  interior  manufacturers  and  exporters  and  to  engage 
in  the  work  of  consolidating  less  than  carload  lots  of  export 
freight.  An  ocean  freight  forwarder  mainly  located  at  the  sea- 
board may  have  an  "overland  department"  at  Chicago  or  other 
interior  points  to  handle  overland  traffic  routed  through  the  ports 
of  the  Pacific  Coast.  Some  concerns  known  as  interior  forward- 
ers have  their  main  office  at  an  interior  point,  in  which  case  they 
may  have  agents,  representatives  or  branch  offices  at  some  of 
the  ocean  ports  and  at  other  interior  shipping  points. 

American  ocean  freight  forwarders  and  domestic  express  com- 
panies engaged  in  the  international  express  or  forwarding  busi- 
ness Handle  most  of  their  business  abroad  through  foreign  con- 
cerns with  whom  they  have  made  business  arrangements.  Some 
of  them  have  estabhshed  their  own  branch  offices  or  agents  at  a 
limited  number  of  the  principal  foreign  cities  in  which  they 
operate,  but  they  do  not  for  the  most  part  have  their  own  busi- 
ness organizations  abroad.  They  have  entered  into  agreements 
with  foreign  freight  forwarders  or  so-called  "spediteurs,"  the 
American  forwarder  agreeing  to  consign  to  his  foreign  agent  all 
freight  or  express  matter  forwarded  to  the  territory  covered  by 
such  agent;  and  the  latter  in  turn  obligating  himself  to  handle 
such  consignments  and  to  forward  through  the  American  for- 


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FREIGHT  FORWARDING  AND  FREIGHT  BROKERAGE    77 

warder  who  is  party  to  the  agreement  such  freight  and  express 
matter  as  is  forwarded  to  United  States,  and  is  not  otherwise 
specifically  consigned.  Each  transaction  is  handled  on  the  basis 
of  a  waybill  which  gives  instructions  to  the  foreign  agent  and 
which  he  returns  with  a  statement  of  his  charges.  These  way- 
bills and  other  forwarding  documents  will  be  described  in 
Chapter  XI. 

The  ocean  freight  forwarding  and  foreign  express  business 
differs  from  the  domestic  express  business,  also,  in  that  no  special 
time  contract  for  the  transportation  of  cargoes  is  entered  into 
with  the  ocean  steamship  companies.  The  practice  in  the  do- 
mestic express  business  of  signing  contracts  under  which  an  ex- 
press company  agrees  for  a  stated  period  of  time  to  pay  a  percent- 
age of  its  gross  receipts  to  a  railroad  and  under  which  the  express 
company  receives  a  monopoly  of  the  express  business  handled 
on  a  given  railroad  route  does  not  prevail  in  the  ocean  forward- 
ing business.  Ocean  freight  forwarders  in  the  overseas  trade  are 
free  to  route  their  consignments  via  the  first  available  steamer. 
These  relations  with  ocean  steamship  companies  are  in  this  re- 
spect like  those  of  other  shippers.  Such  time  contracts  as  have 
been  entered  into  by  express  or  forwarding  and  steamship  com- 
panies are  found  mainly  in  the  coastwise  and  Great  Lakes  busi- 
ness, where  the  number  of  available  steamship  lines  between  two 
points  is  small  or  the  sailings  of  a  particular  line  are  frequent, 
thus  approximating  the  conditions  which  obtain  when  domestic 
express  matter  is  shipped  by  rail. 

The  main  office  of  the  typical  large  ocean  freight  forwarding 
organization  shown  in  Chart  No.  VIII  is  assumed  to  be  located  at 
the  port  of  New  York.  The  members  of  the  firm,  of  which  there 
may  be  several,  generally  supervise  the  entire  business  organiza- 
tion, but  are  largely  occupied  in  keeping  in  touch  with  the  firm's 
customers  and  in  booking  freight  with  steamship  companies. 
One  or  more  Brokerage  and  Forwarding  Managers,  reporting  to 
the  firm  members,  generally  supervise  the  forwarding  stafif  but 
are  likewise  engaged  largely  in  booking  cargoes.  The  firm  mem- 
bers and  these  managers  together  conduct  the  firm's  freight  bro- 
kerage as  distinct  from  its  forwarding  business.  In  some  forward- 
ing organizations  the  booking  of  freight  is  handled  directly  by 
the  managers  or  chief  clerks  in  charge  of  the  groups  of  the  clerks 


78         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

or  departments  that  forward  freight  to  particular  parts  of  the 
world. 

The  forwarding  staff  of  a  large  ocean  freight  forwarding 
house  is  likely  to  be  under  the  immediate  charge  of  a  Manager 
or  Chief  Clerk  in  Charge  of  Forwarding,  although  no  definite 
terminolog}'  has  been  developed.  If  a  large  volume  of  shipments 
is  forwarded  to  various  parts  of  the  world  the  forwarding  work 
under  his  supervision  is  in  many  instances  subdivided  geographi- 
cally. Thus  in  the  chart,  the  forwarding  of  shipments  to  four 
sections  of  the  world  is  handled  by  separate  groups  of  men. 
Each  group  or  department  is  in  charge  of  a  senior  clerk,  under 
each  of  whom  are  from  two  to  five  junior  clerks  and  one  or  two 
stenographers.  In  some  forwarding  organizations  this  work  is 
definitely  divided  among  departments,  each  of  which  is  in  charge 
of  a  Forwarding  Manager.  In  an  organization  of  this  kind  the 
shipments  of  a  customer  are  split  up  geographically  and  the  entire 
forwarding  work  connected  with  a  particular  shipment  is  handled 
by  the  group  of  clerks  who  specialize  on  forwarding  cargoes  to 
the  section  of  the  world  to  which  the  shipment  is  destined. 

There  may,  however,  be  a  Transportation  Department  in  an 
organization  of  a  large  ocean  freight  forwarder  to  follow  up 
cargoes  regardless  of  destination  so  as  to  see  that  delivery  of 
them  by  lighter  or  truck  is  effected  on  the  days  specified  in  the 
shipping  permit  obtained  from  the  steamship  companies.  It  may 
consist  of  but  one  clerk  or  a  senior  and  junior  clerk  who  receive 
copies  of  the  lighterage  and  trucking  instructions  issued  by  the 
men  in  charge  of  forvv^arding. 

No  stenographic  department  has  been  provided  in  the  forward- 
ing organization  which  underlies  this  description,  the  necessary 
number  of  stenographers  being  assigned,  so  far  as  practicable, 
to  the  various  groups  of  clerks  and  officials  where  needed. 

Instead  of  organizing  the  forwarding  staff  on  geographical 
lines  it  may  be  organized  on  the  basis  of  individual  customers, 
i.e.,  all  the  forwarding  work  of  a  given  shipper  may  be  turned 
over  to  a  particular  clerk,  regardless  of  the  sections  of  the  world 
to  which  his  shipments  are  destined.  This  is  a  convenience  to 
the  shipper  in  that  he  deals  continually  w'ith  the  same  individual, 
who  becomes  expert  in  his  shipping  affairs.  It  does  not,  how- 
ever, lead  to  the  technical  knowledge  of  and  specialization  in  the 
varying  shipping  requirements  of  different  foreign  countries  that 


FREIGHT  FORWARDING  AND  FREIGHT  BROKERAGE    79 

is  attained  when  forwarding  work  is  organized  geographically. 
The  advantages  of  an  organization  based  on  separate  customers, 
moreover,  are  attained  at  least  in  part  in  the  usual  geographically 
organized  forvv^arding  staff  because  an  effort  may  be  made  to 
assign  clerks  within  the  various  territorial  groups  to  large  custom- 
ers. The  cargoes  of  an  exporter  shipping  to  different  parts  of 
the  world  are  not  in  this  case  handled  by  the  same  clerk,  but  all 
of  those  destined  to  Europe  may  be  handled  by  a  particular  man 
in  the  group  of  clerks  or  department  assigned  to  European  ship- 
ments, those  destined  to  the  Far  East  by  a  clerk  in  the  Far  East- 
ern group  or  department  who  always  handles  the  Oriental  ship- 
ments of  this  shipper,  etc. 

An  accounting  staff  handles  the  bookkeeping,  auditing,  and 
financial  work  in  connection  with  both  the  freight  brokerage  and 
forwarding  operations  of  the  ocean  freight  forwarder.  Besides 
keeping  the  necessary  records  this  department  sends  bills  to  the 
shippers  whose  freight  is  forwarded;  handles  foreign  exchange 
drafts  and  pays  the  shipper  in  case  the  forwarder  is  financing  his 
transactiohsT  and  settles  the  freight  bills  of  the  steamship  com- 
panies and  the  bills  of  truckmen  and  others  with  whom  the  for- 
warder has  dealings. 

In  the  forwarder's  business  organization  outlined  in  the  ac- 
companying chart  the  Chief  Accountant,  who  supervises  the  ac- 
counting staff,  also  acts  as  the  general  office  manager.  As  such 
he  supervises  the  Filing  Department  where  all  the  correspond- 
ence and  copies  of  the  documents  issued  in  connection  with  each 
transaction  are  filed.  The  nature  of  these  forwarding  documents 
is  discussed  in  Chapter  XL  Switchboard  operators  and  mes- 
sengers also  report  to  him. 

There  may  also  be  an  Advertising  Department  which  sends 
circulars  to  customers  and  prospective  customers,  containing  in- 
formation as  to  forv/arding  services,  steamship  sailings,  and 
ocean  freights.  This  department  also  places  advertisements  in 
shipping  and  trade  journals  and  other  publications  read  by  ex- 
porters and  importers. 

Freight  Brokerage  and   Forwarding   Charges 

The  charge  collected  for  booking  cargo  space  is  known  as 
brokerage  and  is  customarily  one  per  cent,  or  thereabouts  of  the 


80         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

amount  of  the  ocean  freight  bill.  This  has  usually  been  paid  by 
the  steamship  companies  because  they  have  ordinarily  depended 
in  part  upon  freight  brokers  and  forwarders  to  book  cargoes  for 
them.  Under  war  conditions,  however,  when  they  experienced 
no  difficulty  in  securing  cargoes,  the  steamship  companies  in 
many  instances  refused  to  pay  brokerage,  or  would  pay  it  only  to 
forwarders  becoming  members  of  an  approved  freight  brokers' 
association.  Many  forwarders  then  collected  brokerage  from 
the  shippers  or  parties  for  whom  they  engaged  freight.  This 
brokerage  is  collected,  whether  or  not  the  cargoes  booked  are 
actually  forwarded  by  the  forwarder. 

Additional  charges  are  collected  from  the  shipper  or  party 
for  whom  freight  is  forwarded.  There  may  be  a  flat  "forward- 
ing" or  "shipping  service"  charge  of  say  two  dollars  per  ship- 
ment; also  an  additional  charge  of  say  $1.50  for  issuing  bills  of 
lading;  and  a  charge  of  say  fifty  cents  for  issuing  the  shipper's 
customs  clearance.  The  practice  of  forwarders  in  this  regard 
is  not  uniform.  Sometimes  they  also  collect  an  additional  charge 
known  as  "commission"  when  forwarding  commodities  involving 
unusual  care  or  services  on  the  part  of  the  forwarder. 

The  brokerage  received  by  forwarders  acting  as  freight  bro- 
kers in  engaging  freight,  and  the  additional  charges  collected  for 
forwarding  services  are  in  practice  closely  related.  If  no  bro- 
kerage were  received  the  small  charges  specifically  collected  for 
forwarding  services  would  in  many  instances  not  constitute  ade- 
quate compensation.  At  times  the  ocean  freight  forwarder  may 
also  receive  revenues  from  other  sources.  Thus  if  the  shipper 
arranges  to  have  the  forwarder  pay  the  invoice  price  of  his 
cargo,  i.e.,  finance  his  trade  transactions,  collection  or  discount 
fees  may  be  charged.  When  marine  insurance  is  engaged  by  a 
forwarder  for  a  shipper  the  forwarder  usually  receives  a  com- 
mission from  the  insurance  company  or  underwriter.  Ocean 
freight  forwarders  usually  act  as  marine  insurance  brokers  or 
agents  and  receive  compensation  from  the  insurance  concern  in 
which  the  risks  are  insured. 

If  the  shipper  requests  the  quotation  of  a  through  freight 
charge  to  an  interior  foreign  destination  on  a  consignment  suf- 
ficiently large  to  be  billed  on  a  minimum  steamship  bill  of  lading 
without  consolidation  with  other  shipments,  such  through  charge 
may  or  may  not  in  a  particular  instance  be  somewhat  higher 


FREIGHT  FORWARDING  AND  FREIGHT  BROKERAGE    81 

than  the  actual  freights  paid  to  the  carriers  by  the  forwarder. 
The  railroad  rate  to  the  American  port  of  export  can  be  definitely 
ascertained  from  available  railroad  tariffs  and  the  ocean  freight 
rate  to  the  foreign  port  of  entry  can  be  obtained  from  the  steam- 
ship company,  but  the  actual  inland  freight  charges  beyond  the 
port  of  entry  to  a  particular  inland  destination  are  not  always 
readily  ascertainable  until  after  delivery  is  made.  Forwarding 
clerks  of  some  concerns  are  therefore  supplied  with  general  rate 
tables,  which  are  applied  in  quoting  through  freight  charges.  In 
particular  instances  the  through  charge  may  prove  to  be  higher 
than  the  actual  charges  paid  by  the  forwarder,  thus  including  a 
profit,  but  in  other  instances  they  may  prove  to  be  lower.  For- 
warders, when  possible,  use  the  actual  rate  tariffs  showing 
charges  to  interior  destinations  or  obtain  advices  from  their 
foreign  agents,  and  when  such  tariffs  or  advices  are  not  at  hand 
they  may  refuse  to  quote  a  through  rate. 

When  forwarding  ocean  freight  consignments  that  are  too 
small  to  go  forward  without  consolidation  with  other  consign- 
ments because  of  the  high  minimum  freights  per  ocean  bill  of 
lading  charged  by  many  steamship  lines,  the  main  profit  of  the 
forwarder  may  be  derived  from  the  difference  between  forward- 
ers' and  ocean  carriers'  freight  charges.  The  forwarder  pays 
the  steamship  line  for  transporting  a  combined  cargo  including 
the  small  shipments  of  a  number  of  shippers,  and  he  in  turn 
charges  each  individual  shipper  rates  that  are  lower  than  the 
high  minimum  rate  per  bill  of  lading  demanded  by  the  steamship 
line,  but  sufficiently  high  to  include  a  forwarding  profit.  The 
sum  of  the  several  rates  paid  to  the  forwarder  on  a  combined 
shipment  of  small  consignments  exceeds  the  freight  charge  paid 
by  the  forwarder  to  the  ocean  carrier.  The  transaction  may 
therefore  be  profitable  both  to  the  forwarder  and  his  customers. 

Through  rates  on  small  package  or  express  goods  are  in  some 
instances  quoted  on  the  basis  of  printed  express  tariffs.  The 
published  rates  for  different  weights,  stated  in  the  foreign  tariffs 
of  the  American  Express  Company,  for  example,  apply  from  the 
port  of  export  to  various  foreign  destinations  and  are  charged 
in  addition  to  the  express  rates  from  the  interior  point  of  origin 
in  the  United  States  to  the  port  of  export.  Valuation  charges 
per  $100  are  added  to  the  express  rates  if  the  value  of  an  ex- 


82        OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

press  package  exceeds  $50,  and  if  insurance  is  desired  the  marine 
insurance  charges  stated  in  the  tariff  are  added. 

It  will  be  noted,  however,  that  this  tariff  is  not  "iron-clad." 
It  specifically  states  that  "the  variations  in  foreign  rates  allow 
no  fixed  schedule.  To  large  or  regular  shippers,  all  responsible 
competition  will  be  met."  Elsewhere  in  this  tariff  it  is  stated 
that  "special  ocean  rates  on  large  shipments  by  express  will  be 
quoted  upon  application."  Tariffs  of  this  kind  are  used  only  in 
forwarding  small  packages  and  even  then  the  rates  contained  in 
them  serve  merely  as  a  maximum  charge. 

Competition  in  Freight  Forwarding  Business 

The  ocean  freight  forwarding  business  has  in  recent  years 
become  increasingly  competitive.  Not  only  are  there  a  large 
number  of  forwarders  who  compete  with  each  other,  but  they 
are  as  a  group  affected  by  the  announcement  of  a  number  of 
ocean  steamship  lines,  or  the  steamship  agents  operating  them, 
that  they  will  themselves  act  as  freight  forwarders.  The  rail- 
roads, moreover,  have  been  issuing  through  or  export  bills  of 
lading  from  interior  points  to  foreign  destinations.^  Large 
shippers  are  establishing  direct  agencies  or  branch  offices  at  the 
larger  ports,  and  some  of  the  export  commission  houses  or  other 
trade  agencies  through  whom  exporters  sell  merchandise  when 
not  dealing  directly  with  their  foreign  customers  at  times  agree 
to  act  as  port  representatives.  Trucking  concerns  may  be  en- 
gaged to  transfer  shipments  at  the  ports ;  insurance  brokers  to 
insure  ocean  cargoes;  custom  house  brokers  to  enter  imports  at 
the  custom  house  and  even  to  forward  import  cargoes  to  interior 
destinations.  The  foreign  package  or  express  business,  more- 
over, is  effected  by  the  international  parcels  post  service  which 
has  been  established  to  many  countries  by  the  Post  Office  De- 
partment through  parcels  post  agreements ;  and  somewhat  also 
by  the  issue  of  parcels  receipts  by  a  number  of  steamship  com- 
panies.^ 

Ocean  freight  forwarders,  however,  continue  to  do  a  large 
brokerage  and  forwarding  business  because,  as  was  formerly 
stated,  they  render  distinct  services.  It  is  significant  that  many 
large  interior  shippers,  instead  of  shipping  on  through  railroad 

'  See  pp.   103,  104.  "  See  p.   105. 


FREIGHT  FORWARDING  AND  FREIGHT  BROKERAGE    83 

export  bills  of  lading,  choose  to  consign  their  export  cargoes 
to  an  ocean  freight  forwarder  so  as  to  take  advantage  of  favor- 
able ocean  rate  fluctuations  and  a  possible  saving  in  port  transfer 
expenses  or  to  obtain  some  special  service  which  the  forwarder 
stands  ready  to  perform. 


PART  TWO 
OCEAN  SHIPPING  DOCUMENTS 


CHAPTER  VII 
SHIPPING  DOCUMENTS   REQUIRED   BY   OCEAN   CARRIERS 

In  a  study  of  practical  steamship  operation  much  depends  upon 
a  knowledge  of  the  shipping  documents  required  by  the  carriers, 
by  the  United  States  Government  and  by  foreign  governments. 
It  is  the  purpose  of  this  chapter  to  describe  the  contents  of  the 
essential  documents  required  by  ocean  carriers ;  the  manner  in 
which  they  are  handled  and  the  uses  to  which  they  are  put. 

Cargo  Contracts  and  Booking  Records 

It  is  the  ambition  of  every  traffic  manager,  and  freight  agent, 
or  loading  broker,  to  have  the  available  cargo  space  in  his  ves- 
sels fully  engaged  before  the  vessel  arrives  in  port.  Before  the 
war,  this  was  not  always  accomplished  and  cargo  was  frequently 
booked  almost  up  to  the  day  of  sailing,  but  as  this  complicates 
the  v/ork  of  the  traffic  department,  causes  confusion  in  the  last 
hours  before  sailing  and  interferes  with  the  efficient  loading  of 
the  vessel,  cargo  is  booked  in  advance  whenever  possible.  With 
an  absence  of  sufficient  cargo  there  is  little  opportunity  for  se- 
lection, but  when  cargo  is  abundant  the  traffic  manager  and 
freight  agents  endeavor  to  so  balance  weight  and  measurement 
cargo  and  the  amount  of  fuel  taken  on  as  to  approach  the  point 
of  maximum  net  earnings. 

Freight  contracts  are  therefore  closed  with  shippers  either  by 
mail  or  personally  by  freight  agents,  salesmen,  solicitors  or 
brokers.  The  typical  freight  contract  reproduced  in  Form  1 
specifies  the  name  of  the  shipper  and  his  address,  the  name  of 
the  vessel,  expected  time  of  loading,  destination,  cargo  descrip- 
tion, number  of  cases,  bales,  etc.,  and  weight  of  cargo,  the 
freight  rate  per  cubic  foot,  or  equivalent  weight  or  measurement 
at  ship's  option,  and  a  clause  to  the  effect  that  the  contract  is 
m.ade  subject  to  the  terms  of  the  bills  of  lading  in  use  by  the 
vessel's  agents  and  the  usual  war  clauses,  customs  and  navai 

87 


88 


OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


regulations  now  or  hereafter  placed  in  force  and  in  this  particu- 
lar instance,  also  the  rules  of  the  New  York  Produce  Exchange. 
As  fast  as  cargo  bookings  are  made,  entries  are  made  in  the 
■freight  engagement  record  of  the  Traffic  Department.  The 
loose  leaf  reproduced  in  Form  2  is  so  planned  as  to  show  at 
any  particular  time  the  amount  of  cargo  that  has  been  booked. 
The  items  entered  are  the  name  of  the  steamer,  the  port  of  sail- 
ing and  destination,  the  weight  and  measurement  of  the  cargo 


»  I 
si 

«  2 


i 


New  York,  3optemt)er  aard.lglfl  Contract  No',  -  %*  ,-- 

FREIGHT  CONTRACT  Origrinal 

We  confirm  bookinfi  made"«itha«BtQa-tiilla»»_k.Jtt4lhcirft_ln4.« 

^ 59   Broji<if«y  few  york  City __________«__. 

per S.t.eamex_J ,  i-r^n^A  toj 


comroodity. 


J6BEJiia:JJJBE5- 


ol«-olot)k 

a  c/a-bag-^ranas- 


-40-1  bei 


flt  rate  of^ 


-7Q/--. 


.■r......>{>er_CU,rT.- 


,.or  «<iumlcnt. 


weight  or  measurement,  thip's  option. 

TMi  •oamct  b  ntde  rab^Mt  » :     Tm3|«  o«  Bin.  of  L«dlii4  ia  iii«  br  VcMr*  A^cfik'  tl  aMU»  Wof  Ctowow  OiWn»l  «ad  N«v«l, 
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Accepted 
Ci<rrot<  WIU.|AMS&WIGMORE^(ne.'       Gastosl  Vnxuiia  &  VicMots  SnAUSHir  Cowaiatwh. 


Form   i. — Ocean  Freight  Contract 

booked,  the  number  of  packages,  a  description  of  their  contents, 
time  of  delivery,  with  whom  booked  and  the  freight  rates  at 
which  they  were  booked. 


Shipping  Permits 

The  various  cargoes  when  booked  may  not  be  delivered  in- 
discriminately or  at  any  time,  by  the  shippers,  except  by  special 
arrangement  in  unusual  instances.  Cargo  is  usually  delivered  on 
shipping  permits  issued  by  the  permit  clerks  of  the  Traffic  De- 
partment, referred  to  in  Chapter  II.  After  being  instructed  by 
the  Freight  Traffic  Manager  or  his  Assistant  as  to  the  dates  when 
the  various  cargoes  which  have  been  booked  may  be  ordered 


pq 


o 


90 


OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


forward  the  permit  clerks  issue  to  the  shippers  permits  of  t  le 
kind  reproduced  in  Form  3.  The  permit  here  reproduced 
instructs  the  receiving  clerk  at  a  specified  wharf  or  pier  to  receive 
from  a  named  shipper  on  specified  dates,  certain  packages  of 
cargo  of  described  contents,  weights  and  shipping  marks  for 
shipment  to  a  given  port  of  destination  in  a  designated  steamer. 
It  also  indicates  the  number  of  the  export  declaration  covering 
the  shipment  and  contains  various  terms  and  conditions  as  fol- 
lows : 


Bvaaos 
7RC 
S   100 

V  R  C 
S  101 
T  R  C 

V  1/S 


4' 


/srt 


V.4 


■  »C4I    >I*J«M 

THE  OLOBE  LINE 

Cadon,  WiDiuu  &  Wigmore  Steamship  CorporadoD 

CEWERAl.  ACEKT3 
10    PEARL    STREET 
To  the  ReetMng  Clerk, 

jlt   p\f>T   f.  P.rjg  RR  J&jaey  City        Hop  York, SfiJ.t.g^rjl - ■ 

.  will  please  receive  from  MJ5aston_.WiU  l_a.__Jk_5i£more_Inc^ 

fh^pment  per  Steamer JC for— BnfinOijUXeS. 


N0..3&. 


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b  Vw9  York  Prof^flJ^  EJubuire  nle^    Ko  roodj  raccjved  AfUniam  JaAiriter  or 

THE  OLOBE  LINE 

Gaston.  Williams  &  Wi^rrore  Steamship  Corporation 
Pef y.A.ROflSRTS. 


Form   3. — Shipping    Permit 

1.  Freight  rates  are  based  upon  a  valuation  not  exceeding  $100  per 
package;  if  the  value  of  the  goods  exceeds  such  valuation,  the  same 
should  be  declared  void  and  a  rate  of  freight  based  thereon  be  arranged 
at  time  of  taking  out  this  permit;  otherwise  the  goods  are  received 
subject  to  the  regular  bill  of  lading  provision  limiting  the  value  to 
invoice  cost  not  exceeding  $100  per  package  and  no  change  will  be  made 
therein : 

2.  The  goods  or  any  part  may  be  held  by  the  steamship  company 
for  the  next  steamer  of  the  same  line;  and  are  received  subject  to  delay, 
damage,  or  default  from  or  consequences  of  riots,  strikes,  stoppage  of 
labor  and  like  disturbances. 

3.  The  steamship  company's  regular  bill  of  lading  shall  be  issued  for 
the  shipment  and  shippers  are  understood  to  have  acquainted  themselves 
therewith.  The  steamship  company  shall  not  become  responsible  for 
the  goods  as  a  carrier  until  they  are  actually  loaded  on  the  steamer; 
until  such  loading  it  shall  be  liable  only  as  ordinary  bailee  for  loss  or 
damage  caused  by  its  fault,  and  be  subject  to  all  conditions,  exceptions 
and  limitations  o*  liability  contained  in  its  regular  bill  of  lading. 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS      91 

4.  Demurrage  shall  be  allowed  on  lighters  or  craft  in  accordance  with 
New  York  Produce  Exchange  rules.  No  goods  are  received  Saturday 
afternoon  or  after  5  P.M.  on  other  days  unless  otherwise  endorsed 
hereon. 

5.  Bills  of  lading  accompanied  by  sworn  clearance  must  be  presented 
not  later   than   one   day  before   date  of   sailing. 

6.  Shippers  guarantee  that  no  enemy  of  the  United  States  of  America, 
Great  Britain  or  her  allies  are  interested  in  this  shipment. 

The  shipping  permits  issued  by  some  steamship  hnes  are  simple 
documents  which  do  not  contain  all  of  the  terms  and  conditions 
enumerated  above.  They,  however,  serve  their  essential  pur- 
poses in  that  they  instruct  the  receiving  clerk  at  a  specified  pier 
to  receive  designated  cargo  oh  particular  days. 

In  issuing  permits,  care  is  taken  to  so  order  cargo  forward  as 
not  to  congest  the  pier  or  ship  with  cargo  and  lighters  and  at 
the  same  time  enable  the  Dock,  Wharf  or  Pier  Superintendent 
of  the  Operating  Department  to  stow  the  cargo  quickly  and  with 
due  regard  to  its  order  of  discharge  at  destination  ports,  and  its 
inflammable,  bulky,  heavy,  fragile  character  or  other  stowage 
considerations  described  in  the  volume  on  Wharf  Management. 
A  record  of  the  permits  issued  is  usually  kept  on  permit  sheets, 
a  copy  of  which  is  shown  in  Form  4. 

Dock  Receipts 

As  cargo  for  which  shipping  permits  have  been  issued  is  de- 
livered by  the  shipper  or  his  representative  by  truck,  car  or 
lighter,  he  is  given  a  dock  receipt  which  is  usually  issued  by  the 
Assistant  Receiving  Clerk  of  the  Wharf  Department.  In  issuing 
these  receipts,  notations  are  made  of  irregularities  such  as  frail 
containers,  shifting  contents,  or  signs  of  tampering  with  pack- 
ages. Unless  the  shipper  rectifies  such  irregularities  or  instructs 
the  steamship  company  to  do  so,  clauses  may  be  inserted  in  the 
bill  of  lading  relieving  it  of  liability  for  damaged  or  improperly 
packed  cargo.^ 

The  dock  receipt,  copy  of  which  is  reproduced  in  Form  5, 
lists  the  packages  received  at  the  dock,  giving  a  description  of 
their  contents,  the  number  of  packages,  their  shipping  marks  and 
their  weight  or  measurement  or  both.  It  also  names  the  steamer 
for  which  the  cargo  is  booked,  and  the  ports  of  shipment  and 

*J.  A.  Slechta,  Paper  on  "Practical  Steamship  Operation." 


5s; 


f!    2 


C/3 


P^ 


p2 


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92 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS       93 

destination;  it  makes  reference  to  the  federal  statute  concern- 
ing the  making  and  declaration  of  explosives  or  other  dangerous 
articles;  it  contains  a  statement  that  the  cargo  is  received  subject 
to  the  conditions  expressed  in  the  steamship  company's  bill  of 
lading  and  with  the  understanding  that  the  carrier  may  substitute 
other  steamers,  that  the  port  of  destination  must  be  marked  on 
each  package,  and  that  the  bills  of  lading  accompanied  by  sworn 
clearances,  should  be  presented  not  later  than  noon  of  the  day 


"',  ORIGINAL  THE  GLOBE  LINE'  no..  /Z.^ 

1 1  ll  Gastoh  Wiluams  &  WiGMORE  Steamshp  Corporatkw 

bJi%  V^^  ■  general  agents  b^n„_^4^ 

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PORT  Of  DESTINATION  MUST  BE  MARKED  ON  EACH  PACKAGE. 


Form  5. — Dock   Receipt 

before  date  of  sailing.  It  is  specified  by  some  steamship  lines  that 
the  dock  receipts  are  to  be  returned  with  the  bill  of  lading,  i.e., 
be  exchanged  for  them,  but  this  is  frequently  not  done  in  prac- 
tice. Dock  receipts  variously  state  that  "all  risk  of  loss  or  dam- 
age while  goods  are  on  dock  awaiting  shipment,  however  oc- 
curring, is  to  be  borne  by  shippers" ;  or  "that  merchandise  on  the 
wharf  awaiting  shipment  is  to  be  at  owners'  risk  of  loss  or  dam- 
age in  every  case  and  particular  in  which  it  shall  not  be  proved 
that  such  loss  or  damage  shall  have  resulted  from  the  fault  or 
negligence  of  the  carrier  or  its  servants."  Each  receipt  is  num- 
bered so  as  to  facihtate  its  identification. 


94         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


Tally  Sheets,  Dock  Sheets  or  Returns,  Cargo  Books  and 
Stowage  Plans 

Although  the  work  of  the  Wharf  Department  is  more  fully 
described  in  the  volume  on  Wharf  Management,  it  is  necessary 
at  this  point  to  refer  to  the  tally  and  dock  sheets  and  cargo 
books  made  at  the  piers  because  they  are  used  by  the  Traffic 
Department  in  issuing  bills  of  lading  and  in  preparing  the  ship's 
manifest.  As  cargo  is  landed  from  lighters,  cars  or  trucks  for 
loading,  each  package  or  piece  is  tallied,  measured  and  recorded 
on  dock  sheets  (see  Form  6)  and  damage  to  freight  is  noted 
by  the  receiving  tallymen  of  the  Wharf  Department.  All  pack- 
ages as  received  are  listed  with  the  number  of  packages  in  the 
shipment,  their  marks,  description  of  their  contents,  dimensions 
or  measurements,  their  cubical  contents,  weight  and  shipping 
marks,  permit  and  dock  receipt  numbers,  names  of  shippers  cor- 
responding to  those  on  the  permits,  the  name  of  steamer  and  the 
port  of  destination.  Extension  clerks  then  by  means  of  conver- 
sion tables  translate  the  measurements  on  these  sheets  into  tons 
and  consolidate  the  tallymen's  report  ready  for  calculation  of 
freight.  Each  sheet  is  numbered,  and  a  column  is  provided  for 
inserting  the  number  of  the  bill  of  lading.  When  comparison  of 
the  dock  sheets  with  duplicate  copies  of  shipping  permits  sent 
to  the  dock  by  the  Traffic  Department,  shows  that  cargo  was 
not  delivered  by  the  shipper  on  permit  dates,  the  receiving  clerk 
of  the  Wharf  Department  usually  notifies  the  former  on  sepa- 
rate dock  sheets  designated  as  "not  arrived." 

When  cargo  is  loaded  into  the  steamer's  holds,  lighterage 
clerks  or  tallymen,  or  sometimes,  in  case  of  foreign  cargo  carriers, 
subordinate  deck  officers  or  apprentices,  make  up  tally  sheets 
containing  full  particulars  concerning  each  separate  shipment. 
The  items  listed  in  the  tally  sheet  reproduced  in  Form  7  are 
those  contained  in  the  dock  sheets,  a  separate  sheet,  however, 
being  made  out  for  each  shipment. 

The  dock  sheets  and  tally  sheets  are  used  for  various  purposes : 

1.  They  constitute  an  original  record  for  the  Wharf  Depart- 
ment of  all  cargo  received  at  the  docks  and  loaded  into  vessels. 

2.  Tally  sheets  are  of  assistance  to  the  Wharf  Department 
in  the  preparation  of  the  so-called  sfozvage  plan  (see  Form  8), 


95 


96 


OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


which  graphically  shows  the  disposition  of  cargo  within  the  holds 
of  the  vessel  and  is  of  utility  in  discharging  cargo  and  in  prepar- 
ing the  ship's  manifest,  if  it  has  been  carefully  drawn. 


Mn.te>  UMK 

TALLY  SHEET 

THE  GLOBE  LINE 
GASTON,  WaUAMS  &  WIGMORB  STEAMSHIP  CORPORATION 

QU4EBAL  AGKim 

39  BBOADWAY.  NEW  TOBS 
Permit  Uo^^  ^                                                                            KeceiptJIo.  .V  ^  ^^ 
S.  S.  ^-^J^^^^-*-'"^*^  Ji          Port_^;^.£*-^;«?i;^«2a-*^   ..Dat«_y^#=^  7^  191  J'- 

HAMS 

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Form   7. — ^Tally   Sheet 


3.  Copies  of  the  tally  sheets  made  when  cargo  is  loaded  into 
the  vessel  are  usually  kept  on  board  by  the  chief  officer,  under 
whose  supervision  the  purser  makes  up  a  ship's  cargo  book  which 


97 


98         OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

iisLS  the  vessel's  cargo  by  marks  and  numbers  consigned  to  each 
port  and  laden  in  each  hold. 

4.  Copies  of  the  dock  sheets  are  sent  each  day  and  when  load- 
ing, several  times  daily  to  the  Traffic  Department ;  here  they  are 
needed  by  bill  of  lading  clerks  in  checking  against  the  bills  of 
lading  which  the  shippers  are  expected  to  present  for  signature 
as  soon  as  their  cargo  has  been  sent  to  the  dock;  and  in  calcu- 
lating the  amount  of  freight,  the  rate  and  the  basis  on  which  it 
is  determined. 

Ocean  Bills  of  Lading 

The  principal  document  as  between  shipper  and  ocean  carrier 
is  the  ocean  bill  of  lading  which  serves  the  following  purposes : 
(1)  It  is  the  final  receipt  for  cargo  delivered  to  the  carrier.  (2) 
It  is  the  shipping  contract  under  the  terms  of  which  the  cargo 
is  accepted  by  the  carrier  for  transportation  and  delivery.  (3) 
Certain  copies  are  negotiable  and  may  be  used  by  the  shipper  in 
obtaining  loans  or  to  attach  to  drafts  either  for  collection,  ad- 
vances or  negotiation.  (4)  The  consular  regulations  of  various 
foreign  countries  require  certified  copies  of  the  bill  of  lading 
for  customs  entry  at  their  ports;  and  (5)  in  times  of  war  a  copy 
may  be  carried  by  the  vessel  to  supplement  the  ship's  manifest 
in  the  identification  of  cargo. 

The  bills  of  lading  are  arranged  on  the  carriers'  blanks  by  the 
shipper  who  is  expected  to  present  them  ready  for  signature  as 
soon  as  his  cargo  has  been  sent  to  the  dock.  The  various  pack- 
ages shipped  are  listed  as  in  the  dock  receipts  that  were  issued 
when  they  were  delivered  at  the  dock,  care  being  taken  in  the 
entry  of  contents,  numbers,  marks  and  weight.  The  shipper  is 
supposed  to  return  the  dock  receipts  with  bills  of  lading  as  they 
contain  the  receiving  clerk's  notations  concerning  frail  contain- 
ers or  packing,  signs  of  tampering,  shifting  contents  or  other 
irregularities.  These  notations  are  also  made  on  the  dock  sheets, 
but  if  the  receipts  are  returned,  the  bill  of  lading  clerks  have  an 
additional  check.  The  number  of  copies  of  the  ocean  bill  of 
lading  issued  varies  according  to  the  requirements  of  the  shipper 
and  carrier  and  in  some  instances  also  according  to  the  con- 
sular requirements  of  foreign  countries.  The  number  of  ne- 
gotiable bills  is  usually  three  or  four  and  the  number  of  non- 
negotiable  copies  varies  from  three  to  ten.    During  the  war,  the 


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THE  GLOBE  LINE 


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BUENOS  AIRES 

Gaston,  Williams  &  Wipiore  Steamsiiip  Coiporation   ||^|j|^°' '" '"'  °"'" """°"'  "'■ '"""" """ 

ONE  ID     BALE  CLOTH 


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IN  WITNESS  WHEREOF,  the  Mas 


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d  Steamship  halh  affirmed  to....? Bills  of  Uding,  all  of  this  lenor  and  date,  OM  of 


p„.a ,■„  KEw  voR.. 25.....ay  o,. ...SEPTEMBHB ™  8     mo„  ,fc,  j WEnKlotaktCap,*. 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS      99 

shipper  was  required  to  insert  the  number  of  the  export  license 
received  from  the  War  Trade  Board  and  also  enemy  trading 
license  numbers ;  or  in  case  no  licenses  were  required,  the  nota- 
tion "N.L.R."  The  number  of  the  shipper's  export  declaration 
is  likewise  shown  in  the  bills  of  lading. 

As  fast  as  the  dock  sheets  or  returns  for  the  cargo  listed  on 
each  bill  of  lading  are  received  by  the  Traffic  Department,  the 
bill  of  lading  clerks  check  the  various  items  which  were  entered 
by  the  shipper.  If  irregularities  are  noted  on  the  dock  sheets 
or  on  the  dock  receipts,  in  case  they  were  returned,  and  the 
shipper  has  not  rectified  them  or  instructed  the  carrier  to  do  so 
at  shipper's  expense,  special  clauses  may  be  inserted  in  the  bill 
of  lading  contract  to  relieve  the  steamship  line  from  responsi- 
bility for  damaged  or  improperly  packed  cargo.  The  bill  of 
lading  clerks  then  calculate  the  amount  of  the  total  freight  charge 
and  enter  it  on  the  line's  copy  and  on  one  of  the  shipper's  non- 
negotiable  copies,  together  with  the  rate  of  freight  and  the  basis 
on  which  it  is  determined.  To  enable  them  to  compute  rates 
and  charges  accurately  and  in  the  shortest  time,  they  are  pro- 
vided with  tables  of  rates  or  tariffs  and  tables  of  weights  and 
measurement.  The  number  of  the  dock  receipt  is  also  inserted, 
the  number  of  the  export  declaration  is  checked  and  inserted  by 
the  bill  of  lading  clerks  and  each  bill  is  given  a  bill  of  lading 
number. 

In  the  line  copy  of  the  bill  of  lading  reproduced  in  Form  9, 
the  items  listed  by  the  shipper  and  bill  of  lading  clerks  may  be 
readily  distinguished  as  the  former  were  made  on  a  typewriter 
and  the  latter  with  a  pencil.  It  was  necessary  in  this  case  to 
show  weights  in  kilos  as  well  as  pounds,  a  requirement  applicable 
on  shipments  to  most  South  American  countries. 

When  the  bill  of  lading  clerks  have  completed  their  checking 
and  freight  calculations  the  freight  rate  clerk  or  broker  who  en- 
gaged the  cargo  is  required  to  initial  the  line  copy  as  to  the 
correctness  of  the  rate  (see  Form  9).  All  the  copies  are  then 
referred  to  the  Cashier  of  the  steamship  company,  who  is  re- 
quired to  verify  the  freight  calculations,  initial  them  as  being 
correct,  enter  the  amounts  collectable  in  his  cash  book,  and  hold 
the  shipper's  copies  for  delivery  to  him  on  payment.  The  ne- 
gotiable bills  are  signed  by  a  responsible  person,  the  chief  bill 
of  lading  clerk  usually  receiving  authority  to  do  so  from  the 


100       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

company's  Board  of  Directors.  The  non-negotiable  copies,  in- 
stead of  being  signed,  are  initialed.  As  the  requirement  regard- 
ing prompt  prepayment  of  freight  may  cause  inconvenience  to 
large  shippers  who  make  many  shipments  covered  by  numerous 
bills  of  lading,  "due  bills"  are  accepted  by  some  lines  at  the  time 
the  signed  bills  of  lading  are  delivered  to  the  shipper,  but  the 
practice  has  become  less  general.  It  is  especially  open  to  abuse 
when  the  due  bill  becomes  merely  an  informal  promise  to  pay 
signed  by  office  boys  or  messengers. 

Ocean  bills  of  lading  are  sometimes  made  out  directly  in  the 
name  of  the  foreign  consignee,  especially  when  the  goods  have 
been  paid  for  at  time  of  shipment,  when  satisfactory  security  or 
guarantee  has  been  arranged  or  when  they  are  shipped  on  open 
account.  But  the  more  common  practice  is  to  make  them  out  in 
the  name  of  the  shipper  himself,  i.e.,  they  are  drawn  "to  order," 
the  merchandise  being  deliverable  to  order  or  to  his  or  their  as- 
signs. Such  a  bill  is  negotiable  because  the  consignee  cannot  ob- 
tain the  cargo  until  he  presents  the  order  bill  of  lading  with  the 
shipper's  endorsement  or  signature  on  the  back  of  the  bill.  The 
endorsement  may  be  made  either  in  blank  or  specifically  to  a 
named  individual  or  concern.  When  attached  to  drafts  the  bank- 
ers handling  the  financial  transaction  require  a  so-called  "full  set" 
or  all  of  the  negotiable  copies  that  have  been  issued.  An  ex- 
amination of  Form  9  will  show  that  the  number  of  signed 
or  negotiable  bills  of  lading  issued  by  the  carrier  is  specifically 
stated.  The  negotiable  bills  of  lading  properly  endorsed  by  the 
shipper  conveys  ownership  of  the  cargo.  They  may  be  attached 
to  drafts  or  bills  of  exchange  which  may  be  negotiated  or  sold 
by  the  shipper  for  the  full  or  a  portion  of  the  amount  stated  in 
the  invoice  or  for  collection  at  destination,  or  they  may  be  used 
to  obtain  a  loan. 

Order  bills  of  lading  often  contain  a  so-called  "notify"  clause 
which  authorizes  the  carrier's  agent  at  destination  to  notify  the 
person  who  will  ultimately  receive  the  cargo.  His  name  is  in 
such  case  written  in  the  margin  of  the  bill  of  lading  which  is 
drawn  to  order  of  the  shipper,  but  the  person  notified  does  not 
thereby  obtain  control  of  the  cargo.  When  transshipment  is 
necessary  to  reach  destination  the  name  of  the  agent  to  be  noti- 
fied at  the  transshipment  point  may  similarly  be  written  on  the 
bill  of  lading  with  a  request  that  the  transshipping  agents  of  the 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS     101 

carriers  shall  advise  him  as  to  the  name  and  sailing  date  of  the 
connecting  carrier. 

The  non-negotiable  copies  of  the  bill  of  lading  are  variously 
used  by  the  shipper  for  his  files  and  to  send  to  the  consignee 
for  his  information ;  by  the  carrier  for  its  files  or  to  forward  to 
its  agent  at  destination  and  in  time  of  war  to  provide  the  vessel 
with  a  "Captain's  Copy,"  and  by  foreign  consuls  to  fulfill  the 
legal  requirement  of  foreign  countries. 

It  is  essential  that  bill  of  lading  clerks  understand  foreign 
consular  requirements.  Various  countries  require  the  certifica- 
tion of  stated  numbers  of  the  bill  of  lading  by  their  consul  who 
retains  a  copy;  some  require  the  attachment  of  consular  invoices 
or  certificates  of  origin  to  the  bill  of  lading;  some  have  regula- 
tions concerning  the  statement  of  weights  or  other  items,  the 
use  of  consecutive  numbers,  shipping  marks,  erasures,  interlinea- 
tions or  alterations,  foreign  languages,  or  the  prepayment  of 
freight ;  and  some  foreign  countries  provide  that  shipments  may 
not  be  consigned  "to  order." 

No  uniform  ocean  bill  of  lading  has  been  adopted  in  ocean 
shipping,  the  terms  of  the  contract  vaiying  for  different  lines 
and  especially  in  different  trades.  Local  conditions  at  different 
ports  frequently  cause  steamship  lines  to  vary  the  degree  of 
responsibility  accepted  in  the  delivery  of  cargo.  In  the  bill  of 
lading  reproduced  in  Form  9,  for  example,  *'it  is  stipulated  that 
at  Buenos  Aires,  merchandise  herein  described,  whether  dis- 
charged at  docks  or  into  floating  equipment,  shall  be  taken  by 
consignees  from  ship's  tackle,  at  the  risk  and  expense  of  the 
owners  of  same  and  all  responsibility  on  the  part  of  vessel  for 
shortages,  damage  and  condition  of  goods  shall  cease  when 
merchandise  leaves  ship's  tackle."  This  clause  is  general  in  the 
trade  of  Argentina,  at  certain  ports  of  Brazil  and  in  the  West 
Coast  countries  of  South  America.  Not  only  does  it  affect  the 
responsibility  of  the  carrier  in  case  of  claims,  but  it  places  the 
expense  of  lighterage,  pier  handling  charges  or  other  costs  in- 
curred beyond  the  ship's  tackle  upon  the  consignee.  In  case  of 
one  West  Coast  Line  the  bill  of  lading  calls  for  delivery  ashore, 
but  nevertheless  provides  that  the  costs  beyond  ship's  tackle  are 
payable  by  the  consignee.  A  similar  clause  is  one  requiring  the 
consignee  to  take  delivery  "free  from  alongside,"  bills  of  lading 
containing  such  a  clause  being  known  as  "F.F.A."  bills.     Bills 


102       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

of  lading  covering  general  cargo  shipments  to  Europe  on  the 
contrary  provide  for  delivery  ashore,  except  at  the  smaller  and 
poorly  equipped  ports  of  the  Mediterranean. 

Ocean  bills  of  lading  vary  also  as  to  the  minimum  freight 
charge  to  be  collected.  Many  so-called  "minimum  bills  of  lading" 
specify  a  minimum  freight  variously  fixed  at  one  guinea  (about 
$5.10)  per  bill  of  lading,  five  dollars,  ten  dollars,  or  the  current 
charge  for  one,  one  and  a  half  or  two  tons  or  other  quantity  of 
freight.  Other  ocean  carriers  on  the  contrary  have  no  fixed 
minimum.  There  are,  likewise,  variations  regarding  the  risk  of 
transshipment.     Bills  of  lading  variously  state  that  cargoes  are 

"to  be  transshipped  at to at  Steamer's  expense,  for 

account  and  risk  of  shipper" ;  or  "that  the  carrier  shall  not  be 
liable  for risk  of transshipment,  nor  for  any  dam- 
age, however  caused,  which  is  capable  of  being  covered  by  in- 
surance;" or  "that  all  goods  destined  beyond are  subject  to 

all  conditions,  stipulations  and  exceptions  expressed  in  the  cus- 
tomary form  of  bill  of  lading  in  use  at  the  time  of  shipment  by 
the  carrier  or  carriers  completing  the  transit.  Also  that  the  goods 
be  forwarded  at  steamer's  expense,  but  at  shipper's  risk  either 
by  steamer,  lighter  or  railroad."  Others  provide  "that  the  trans- 
shipment to  connecting  carriers  shall  be  at  the  risk  of  the  owners 
of  the  goods,  but  at  ship's  expense,  and  that  all  liability  of  the 
steamer  shall  terminate  on  due  delivery  to  the  connecting  carrier. 
The  property  shall  be  subject  exclusively  to  all  conditions  of 
carriers  completing  the  transit  and  owners  of  goods  shall  have 
to  make  their  claims,  if  any,  against  them."  The  bill  of  lading 
shown  in  Form  9  provides  that  if  any  cargo  "be  transshipped  to 
a  minor  port  of  consignment,  it  is  expressly  stipulated  that  dis- 
charge at  the  nearest  port  of  call,  as  per  the  foregoing  condi- 
tions, shall  constitute  full  and  complete  delivery,  expense  of 
storage,  other  expenses  and  for  reshipment  to  final  port  of  con- 
signment shall  be  borne  by  owner  of  cargo." 

In  some  instances,  prepayment  of  freight  is  required,  while  in 
others  it  is  stated  that  "freight  need  not  be  prepaid"  with  the 
understanding,  however,  that  this  clause  does  not  apply  to  perish- 
able commodities,  or  others  which  might  on  arrival  at  destination 
b^  of  insufiicient  value  to  cover  shipping  charges.  So,  too,  the 
maximum  value  of  each  package  "unless  otherwise  stated  herein, 
on  which  basis  the  rate  of  freight  is  adjusted,"  is  variously  fixed 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS     103 

at  $100,  $250,  $20  per  cubic  foot,  $500  per  freight  ton  or  other 
fixed  amounts.  Sufficient  has  been  stated  to  emphasize  the  lack 
of  uniformity  in  ocean  bills  of  lading  and  the  need  on  the  part 
of  shippers  to  examine  carefully  the  terms  of  contracts  with 
which  they  may  not  be  familiar.  The  general  liability  terms 
contained  in  the  first  paragraphs  of  ocean  bills  of  lading  con- 
tract are  more  uniform  than  the  detailed,  numbered  clauses  that 
follow,  the  reader  being  urged  to  read  carefully  the  first  three 
paragraphs  of  the  contract  reproduced  in  Form  9.  An  explana- 
tion of  "general  average"  and  of  the  Harter  liability  act  of 
February,  1893,  may  be  found  in  the  manual  of  this  series  deal- 
ing with  Marine  Insurance. 

Through  Export  Bills  of  Lading 

Interior  exporters  instead  of  billing  cargoes  to  the  port  of 
export  on  railroad  bills  of  lading  and  there  rebilling  them  on 
ocean  bills  have  frequently  sent  them  through  on  so-called  "ex- 
port bills  of  lading"  obtained  from  the  rail  carriers.  An  ex- 
amination of  Form  10  will  show  that  the  contract  contained  in 
such  a  bill  of  lading  is  divided  into  three  parts,  each  covering  a 
separate  part  of  the  through  transportation  service  rendered. 
The  terms  contained  in  the  first  part  cover  the  inland  transporta- 
tion of  the  cargo  from  the  interior  point  of  shipment  to  the  port 
of  export,  the  liability  clauses  being  similar  to  those  contained  in 
the  usual  bills  of  lading  issued  by  the  inland  carriers.  The  second  •;^ 
part  covers  the  ocean  transportation  service  and  is  similar  to 
the  terms  contained  in  an  ocean  bill  of  lading.  The  third  part,  --, 
which  covers  the  shipment  from  the  foreign  port  of  entry  to  in- 
terior destinations,  provides  that  "the  property  shall  be  subject 
exclusively  fo  all  the  conditions  of  the  carrier  or  carriers  com- 
pleting the  transit." 

Through  export  bills  relieve  the  shipper  from  the  necessity  of 
arranging  for  the  transfer  of  the  cargo  at  the  ports.  They  do 
not,  however,  relieve  him  from  the  payment  of  the  costs  incurred. 
Many  shippers  prefer  to  rebill  at  the  port  of  export  both  because 
they  have  made  satisfactory  transfer  arrangements  which  they 
believe  will  keep  port  expenses  at  a  low  figure  and  because  they 
prefer  to  take  full  advantage  of  possible,  favorable  fluctuations 
in  ocean  freights.    Owing  to  freight  congestion  and  the  shortage 


104       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

of  ocean  tonnage  during  the  war,  the  use  of  through  bills  was 
restricted  to  shipments  for  which  the  requisite  ocean  tonnage 
was  engaged  at  time  of  issue. 

On  March  14,  1919,  the  Interstate  Commerce  Commission  pre- 
scribed a  uniform  export  bill  of  lading.  It  has  not,  however, 
gone  into  effect,  for  on  July  13  the  United  States  District  Court 
at  New  York  set  aside  the  Commission's  order  on  the  ground  that 
Congress  had  no  intention  of  conferring  upon  it  the  right  to  pre- 
scribe the  form  of  carriers'  bills  of  lading. 


Parcel  Receipts 

The  minimum  freight  clause  usually  contained  in  ocean  bills 
of  lading  often  makes  it  too  expensive  to  ship  single,  small  par- 
cels in  the  ocean  freight  service  and  often  causes  the  shipment 
of  them  through  freight  forwarders  or  international  express  com- 
panies who  combine  many  small  packages  into  40  cubic  feet  of 
space  and  pay  freight  at  the  current  rate  per  measurement  ton. 
Some  carriers  have,  however,  seen  fit  to  facilitate  the  direct 
shipment  of  small  packages  in  the  ocean  freight  service  by  issu- 
ing "parcel  receipts"  which  waive  the  minimum  freight  clause, 
but  variously  limit  the  liability  of  the  steamship  line  to  a  stated 
maximum  value,  and  in  some  instances  impose  restrictions  upon 
the  dimensions  and  weight  of  parcels  and  reserve  the  right  of 
the  carrier  to  refuse  to  issue  parcel  receipts  when  there  is  a  sus- 
picion of  unfairness.  These  receipts  were  originally  intended 
solely  for  samples  of  export  merchandise,  but  their  use  has  be- 
come somewhat  more  general. 

From  the  typical  parcel  receipt  reproduced  in  Form  11,  it  will 
be  noted  that  except  in  so  far  as  the  receipt  itself  imposes  special 
conditions  it  embodies  all  the  "conditions,  exceptions  and  liber- 
ties" contained  in  the  carrier's  bill  of  lading.  Though  issued  at 
lower  freight  rates,  the  parcel  receipt  does  not  fully  obviate  the 
difficulty  occasioned  by  minimum  bills  of  lading.  The  special 
restrictions  imposed,  especially  those  regarding  value,  hamper  its 
use  for  banking  purposes,  and  for  the  shipping  of  articles  of 
higher  value.^  ^ 

'During  the  war  various  lines  discontinued  the  issuing  of  Parcels 
Receipts. 


COPY 


Form    io. — Export   Rill  of  Lading 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS    105 


Holland- America   Linb 

PHILADELPHIA  AND  ROTTERDAM-AMSTERDAM 

H(H.UU)0-AMEItlC&  LINE 

ROTTCHDAM-AriSTCROi 


HOllANO-AlflERICA  LINE 

»HiiAoeiPHi*,  r«. 
10 


No.. 


PHlI^DEtPHIA, J'illj!_8Q..19;i.3. 19 

RECEIVED,  In  apparent  good  order  and  condition,  from 


Smyth  and  Thompson     ... 


for  shipment  per  S.  S.  "- 


..RXrid* 


"  (Voy 


-) 


bound  for  Rotterdam  the  undermentioned  Goods,  to  be  carried  subject  to  all  conditions,  escep- 
jions  and  liberties  contained  in  the  East  Boand  Bill  of  Lading  of  the  Company  for  the  time  being 
in  use  from  the  Steamer's  port  of  departure. 


Marks  and  Numbers. 


■  P.P.  Edg^r. 


Conslsnee. 


Description  of  Hacka^es  and  Contents. 


One(l)  Caee  Typewriter  Ribbom 


Freight,     $1.00 
Cbarees,      ..... 


Total, 


$i.00 


Yhe  Company  will  not  be  liable  for  any  parcel  or  package  exceeding  |io.oo  in  valne,  unless  ench  value 
be  declared  by  the  shipper  upon  delivery  to  the  Company  and  freight  paid  thareon  as  may  be  required. 

H.Ol^UA,ND'A.M.E>RlO^    LINE). 


Form    ii. — Parcel   Receipt 


Ship's  Manifests 

When  a  considerable  number  of  bills  of  lading  for  a  given 
port  are  ready  for  delivery  to  the  shipper  the  freight  manifest 
clerks  of  the  Freight  Traffic  Department  begin  the  work  of  mani- 
festing. Ship's  manifests  are  required  by  the  Government  of  the 
United  States  and  those  of  foreign  countries,  yet  they  are  so  im- 
portant in  vessel  operation  that  they  may  also  be  included  among 
the  shipping  documents  required  by  the  carriers.  Ship's  mani- 
fests are  not  only  prepared  in  the  foreign  trade  and  the  trade 


106       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

between  the  Atlantic  and  Pacific  Seaboards  where  they  are  re- 
quired by  law,  but  frequently  also  in  domestic  trades  where  there 
is  no  legal  compulsion,  although  they  are  then  at  times  known  as 
way-bills  and  are  not  made  out  in  accordance  with  Govern- 
ment requirements. 

The  form  and  contents  of  ship's  manifests  are  not  uniform. 
The  copies  prepared  for  the  customs  authorities  need  to  contain 
the  items  required  by  the  U.  S.  Government,  but  beyond  this 
point  they  vary  according  to  the  foreign  consular  requirements 
applicable  in  different  trades,  and  according  to  the  operating 
conditions  and  practices  that  prevail.  The  sample  manifest  re- 
produced in  Form  12  which  is  used  by  a  line  operating  from 
New  York  to  Buenos  Aires,  contains  columns  for  listing  the  bill 
of  lading  numbers,  names  of  shippers  and  consignees,  marks  and 
numbers  of  packages,  description  of  contents,  measurement  in 
feet  and  inches,  weight  not  only  in  pounds  but  also  in  kilos  be- 
cause the  latter  is  required  in  the  Argentine  consular  regulations, 
export  declaration  number,  remarks  concerning  condition  of 
packing,  etc.,  freight  rates,  total  amount  of  freight  and  other 
charges,  amounts  prepaid  and  amounts  payable  at  destination. 
It  also  contains  the  name  of  the  steamer  and  captain,  the  vessel's 
gross  and  net  register  tonnage,  the  number  comprising  its  crew, 
the  port  of  sailing  and  port  of  discharge,  and  the  date  of  sail- 
ing. Ladings  are  numbered  serially  for  each  port  and  separate 
manifest  is  made  for  shipments  to  each  port  of  discharge.  The 
manifests  are  preferably  prepared  in  the  language  of  the  desti- 
nation country  as  customs  regulations  in  many  countries  require 
translation  at  excessive  costs. 

Manifesting  requires  rapidity  because  it  cannot  be  completed 
until  proper  data  has  been  received  from  the  Wharf  Department 
and  until  the  bills  of  lading  are  ready  for  delivery  to  the  shipper, 
and  because  the  manifest  of  a  large  vessel  carrying  general 
cargo  comprises  many  sheets  and  needs  to  be  completed  before 
or  shortly  after  the  vessel  obtains  its  clearance  from  the  customs 
authorities.  Manifesting  is  exacting  work,  also,  because  absolute 
accuracy  is  required.  It  is  sometimes  done  by  hand,  but  more 
commonly  on  large,  especially  designed  billing  machines,  able  to 
make  a  sufficient  number  of  copies  at  one  writing. 

Careless  typing  is  not  permissible  as  consular  authorities  are 
usually  exacting  with  respect  to  erasures  or  corrections.     The 


X07 


108       OCEAxN  STEAMSHIP  TRAFFIC  MANAGEMENT 

sources  from  which  the  manifest  clerks  obtain  the  various  cargo 
items  listed  in  the  ship's  manifests  are  the  bills  of  lading  and 
exporter's  declarations. 

The  ship's  manifest  is  used  for  various  purposes:  (1)  Before 
clearing  from  a  port  in  the  United  States  to  a  foreign  port  an  at- 
tested copy  of  the  ship's  manifest  needs  to  be  delivered  to  the  port 
collector  who  then  grants  a  clearance  for  the  vessel  and  her 
cargo.  He  retains  an  attested  copy,  which  together  with  the 
shippers'  manifests  or  export  declarations,  becomes  the  basis  for 
the  official  export  statistical  returns  of  the  United  States  and 
serves  as  a  means  for  the  enforcement  of  such  Government  regu- 
lation with  respect  to  vessels  or  cargoes  as  may  be  in  effect  at 
the  time  of  clearance. 

(2)  Upon  arrival  at  foreign  destination  a  copy  of  the  manifest 
needs  to  be  presented,  as  a  requirement  incident  to  entry.  Ves- 
sels entering  American  ports  from  abroad  are  similarly  required 
to  present  manifests  to  the  customs  authorities  upon  entry,  a 
preliminary  copy  being  delivered  to  the  custom  house  officers  who 
board  the  vessel  upon  arrival  and  final  attested  copies  being 
mailed  to  the  Treasury  Department  and  delivered  to  the  Col- 
lector of  the  Port  immediately  after  the  vessel  has  docked  and 
before  discharging  of  cargo  begins.  These  manifests  are, used 
in  the  collection  of  import  duties,  in  the  enforcement  of  customs 
regulations,  and  in  the  preparation  of  the  statistical  returns  in 
the  import  trade. 

(3)  The  ship's  manifest  serves  as  a  routing  document  and  as 
a  check  upon  cargo  at  time  of  discharge. 

(4)  It  serves  as  a  basis  for  the  company's  freight  revenue 
accounts. 

(5)  In  time  of  war  it  is  the  principal  cargo  document  examined 
when  a  merchant  vessel  is  detained  at  sea  by  a  man-of-war  with 
a  view  to  identifying  its  cargo  as  to  kinds  of  commodities,  their 
origin  and  destination. 

Documents  Issued  By  Carrier  When  Discharging 

When  instead  of  loading  cargo  and  leaving  port  an  ocean 
carrier  enters  port,  it  proceeds  to  discharge  its  cargo  after  hav- 
ing satisfied  the  customs  requirements,  but  it  may  not  legally 
release  the  cargo  to  the  consignee  until  he  presents  a  customs 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS     109 

permit  for  examination  of  the  customs  guard  at  the  pier.  This 
permit  indicates  that  the  consignee  has  complied  with  the  re- 
quirements of  the  customs  authorities  concerning  imported  mer- 
chandise. 

The  Inbound  Freight  Department  of  the  steamship  line  in  its 
dealings  with  the  consignee  sends  to  him  an  arrival  notice  and 
freight  bill  such  as  is  shown  in  Form  13,  which  informs  him  of 
the  arrival  of  the  items  listed  and  instructs  him  to  surrender 
it  immediately  at  the  steamship  office  together  with  the  original 


ARRIVAL  NOTICE  AND  FREIGHT  BILL. 


1^ 


THE  GLOBE   LINE 
itsm.  unuusB  t  f  kwu  sruasip  Cur. 


NEW    YORK 


SbtppeJ   iy_ 


I 


r. - 

, , , , 1 


o 

3  PIca«  lutKnclti  unmcdialtly.  •!  miT  Ntw  York  On.cr.   120  Broadway  -  Equitable  BaildiD(  -  (not  •!  the  p<«X 

^  original  bill  of  Udmg.  properly  codoijcd,  pay  Irtighl  and  i^afgea  mcnOo»cd  and  oblaiB  dchvciy  ordir. 

Do  not  call  for  SSipment  until  ootin«d  that  it  t»  ready  for  doliTery. 


Form  13. — Armval  Notice  anb  Freight  Bill 


bill  of  lading  properly  endorsed,  and  to  pay  the  freight  charges 
shown  on  the  bill. 

Entry  is  at  the  same  time  made  in  a  book  of  record,  to  be 
checked  against  the  Cashier's  receipts  of  freight  payments.  This 
notice  of  arrival  does  not  enable  the  consignee  to  immediately 
obtain  his  merchandise  at  the  piers.  It  is  followed  by  a  £nal 
notice  of  arrival  such  as  is  reproduced  in  Form  14,  which  in- 
forms the  consignee  that  the  cargo  is  ready  for  delivery  and 
unless  removed  previous  to  5  P.  M.  of  a  specified  date,  it  will 
be  stored  at  owner's  risk  and  expense  without  further  notice. 
Thereafter  storage  charges  accumulate. 

The  consignee,  moreover,  cannot  obtain  his  cargo  until  he  ob- 
tains  the   company's   delivery   order   which   in   case   of   collect 


110       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

freight  shipments  is  given  to  him  only  after  payment  of  freight 
and  delivery  of  the  negotiable  bill  of  lading  properly  endorsed. 


DcUwy  will  b«  nftcl*  only  ea  turraDdar  of  Delivory  Ordw 


^ 


.S.   .S 

n  // 

<j,if^j  V 

From 

r„ 

THE   GLOBE   LINE 
CUTwi  woiJAas  t  WKMU  STUisnr  cur. 


ntr 


FINAL  NOTICE 

Thii  thipiDeot  i>  ready  (or  delivery. 
Pleaj«  kuiTe  goods  removed  •!  one*. 
TO     AVOID     STORAGE. 


nil   at   your  opboo  be  ilored  ^   owneri  ruk  aod 


U  Dot  fetnoved   previow  to  S  P.  M. 

etpcnte  vnlhoul  (u/lher  oohce. 

fiii/a  o/  laduiff  and  frtigki  momty  mU  not  6«  aeeepted  at  tkt  pier,   but  mutt  bt  tarrtndmd  at  atrr  A'etv 
York  otlct.    120  BROADWAY,    in  txchaiiat  for   Dcliccry   Ordtr. 


Form  14. — Final  Notice  of  Arrival 

If,  however,  the  freight  has  been  prepaid  the  delivery  order  is 
sent  to  the  consignee  "at  the  same  time  as  the  arrival  notices, 
or  shortly  after,  subject  to  presentation  of  the  original  endorsed 


DtlHirM  Clak 

Plujc  JcUomr  It 


-B/L. 


Nat  Ymlu 


^ 


THE   GLOBE   LINE 

Cism  WBXun  t  wkmu  snuEasr  cm. 


MARK*    AND    ARTICUIS 

W..^T 

DELIVERY  ORDER 

Delivery  wiD  bo  oudo  only  OD  aarrondv 
of  thit  Order. 

AO  earfo  when  leoded  on  Oi*  Pi«f  THE    GLOBE    LINE 

will  be  »l  owner,  riak.  oa.tch.  will.m.  a  w.o.oki  aT..«.H„  co.p 


Form    15. — Delivery   Order 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS     111 

bill  of  lading."^  It  gives  authority  to  the  delivery  clerk  at  the 
company's  pier  to  release  cargo  to  the  consignee.  A  copy  is 
reproduced^  TbTm'15.  When  the  cargo- is  finaUy -delivered  the 
receiver  is  required  to  sign  a  delivery  receipt  such  as  is  repro- 
duced in  Form  16. 

In  caje  the  consignee  is  unable  to  present  the  original  bill  of 
lading  with  proper  endorsement  because  he  has  not  received  it 
from  the  shipper,  he  may  furnish  a  bond  such  as  is  reproduced  in 
Form  17.    The  consignee  issuing  the  bond  avers  that  he  is  "en- 


o 

o 

o 
o 

DELIVERY 

RECEIPT 

[ialr 

^ 

THE   GLOBE   LINE 

GASTSU  fflUAJE  i  WlCKOSJ  STEAMSHTP  COJP. 

<i    c                                               Rll.        . 

Shipptd  hg^ 

F,„m 

1 

T 

« 

MARKS    AND    ARTICLCB 

..,.«. 

1 

RtluixJ_ 

DtUotrbig 
Lira  Rtftt 

] 

tnu   1 

neCEIVED   IN    GOOD    ORDER                                                                                  | 

oaVc 

«..vr.."N. 

OCU.CtD    .0 

„0    «C.U>M.  U.  ...T.KG.  A«D  «.,.HT.      ' 

r.ouu. 

.,<,H.iu..or.E«.»t» 

■ 

Form   i6. — Delivery  Receipt 


titled  to  the  immediate  possession  of  said  goods  but  has  not  yet 
received  the  bill  of  lading  covering  the  same,  and  that  he  is  en- 
titled to  said  bill  of  lading,  and  that  the  said  bill  of  lading  has 
not  been  negotiated,  sold  or  transferred."  He  pledges  himself 
to  protect  the  carrier  against  any  consequences  which  may  be 
caused  by  the  delivery  of  the  cargo  to  him.  The  difficulty,  ex- 
pense and  delay  incident  to  the  arrangement  of  such  a  bond  em- 
phasizes the  importance  of  promptly  sending  a  properly  endorsed 
bill  of  lading  to  the  consignee. 

If  upon  arrival  the  captain  of  the  vessel  fears  that  cargo  may 
have  suffered  damage  for  which  his  owners  should  not  be  held 
responsible  or  that  the  vessel  and  its  fittings  have  been  damaged, 

*J.  A.  Slechta,  Paper  on  "Practical  Steamship  Operation." 


112       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

he  may  protect  them  by  making  "protest,"  that  is,  filing  a  note 
of  p-rotcst  before  a  notary  pubHc  such  as  is  reproduced  in  Form 
18.  Later,  should  actual  damage  be  discovered,  he  follows  this 
note  of  protest  with  an  extension  of  protest.  The  former  is  a 
general  protest  against  claims  for  damage  due  to  the  perils  of 
the  sea  encountered,  while  the  latter  recites  more   specifically 


1^ 


BOND  GIVEN  FOR   PRODI  CTION  OF  BILL  OF  LADING  TO 
THE   OLOBE  LINE 


Bf. 


WHEREAS 

.  PACKAGES   OF   COODS. 

»..., 

,^H..« 

GOODS  AND  MH»ut  OF  r«cijices 

-.,.H.  0.  H»S.««M 

Shipped    by— . —      » 

' 

^avr 

«l\_l. 

s  s 

Voyjjt 

B/L_ 

.     .                     IrAcn 

%ntt  (s),  »j\A  entiOrd  to  the  immcdiite  poatnsion  of  ujd  g'Mcb  but 

and  that  ,l'„   J,  eotiOed  <o  titd  bit)  ol  Uding   And  th>At  sxti  b«ll  of  Ud>r\c  h«>  not  been 

requested  The  Clobe  Line.  Cuton.  Wilbamt  &  Wigrsoie  Stevnihip  Corporation.  Cen'l  Agenu.  to  loin    » 


and  the  undersized  claim  that 
C^.  not  ai  yel  reeoved  the  bill  ol  lading  eovenne  the 
ntfotiaKd  kold  or  oanvlerrei 
•  copy  ol  thtir  bJI  ot  ttding 

Now,  7here(ott.  in  eoniideribon  ol  such  delivery,  the  underiigned  pledg*   (0  .i**.'"^     i 
Lint.  Caiton   WilKami  A   Wijmore  Stcaniihip  Corporation.  CenT  Agent*  i£4>ntt  a.nv  and  all 

It  I*  alto  u-idtritood  that  the  undersigned  agree  (»>  to  communKau   w 
fAOdi  mentjor.ed  whKh  document  properly  endorsed  lor  the  delivery  sball  be 


ivon  and  aisigni  to  prot«ci  iiu>  uid  Clobt 

in^e*  which  rruy  be  caused  by  such  delivery 

',  shipper!   without   delay    to   piocurt    a    Dill   of    Lading   (or    the 

ndcrcd  loThe  Globe  Line.  Caiion.  W.U.am*  &  W.grooie  Siean>- 

ftbip  Corporation   CenT  Agents,  as  soon  as  practKal 

Thn  guarantee  to  b«  retained  by  The  Globe  Lme,  Canon.  Williams  &  Wigntorc  Sicatnship  Corpor 
arvdcf  any  i 


.  Ccn'l  Agcnu  and  ao(  to  be  rcnuvtd 


Kci.  Vofk,. 


-191 


Cfcarge  

Total 


Siioaturc  «l  ocmber  ol  the  Untf— 
or  tutboriud  officer  ol  Corporalion 


Form   17. — Bond  for  Production  of  Bill  of  Lading 


the  damage  against  which  the  captain  protests  responsibility. 
An  extension  of  protest  is  reproduced  in  Form  19.  These  marine 
protests  constitute  an  important  part  of  the  evidence  required  b/ 
insurance  companies  before  losses  are  settled. 


DOCUMENTS  REQUIRED  BY  OCEAN  CARRIERS     113 


UNITED  STATES  OF  AMERICA 

State  of  New  York, 
County  of 
City  of  New  York, 

Be  it  Known,  That  on  this   day  of   A.D.,  before 

me a   Notary   Public,   in  and   for  the   State   of    New 

York,  County  of   and  dwelling  in  the  City  of   New  York, 

duly  commissioned  and   sworn,  personally  came   and   appeared    

Master  of  the  called  the 

of of  the  burden  of  tons  or  thereabouts,  which 

sailed   from    on  the    day  of    191 . . 

with  a  Cargo   

bound  for   and  arrived  at on 

the  day  of  last,  and  fearing  damage  owing  to   

(Here  follows  statement  of  causes  which  it  may  be 
anticipated    will   cause   damage   to   cargo   or   vessel) 

during  voyage,  he  hereby  notes  his  protest  before  me,  the  said  Notary, 
against  all  losses,  damages,  etc.,  reserving  right  to  extend  the  same  at 
time  and  place  convenient. 

Master  of  Verified    before    me,    the    day    and 

year  first  above  written 

Notary  Public 
for  the  State  of  New  York 


Form  i8. — Marine  Note  of  Protest 


114       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 
UNITED  STATES  OF  AMERICA 


STATE   OF   NEW   YORK. 
CITY   OF   NEW   YORK. 


BY  THIS  PUBLIC  INSTRUMENT  OF  DECLARATION  AND  PROTEST,  be  it  made  known 

and  manifest  to  all  whom  It  may  concern,  that  on  the day  of 

In  the  year  of  our  Lord  one  thouiiand  nine  hundred  and before 

personally  appeared Master  of  the '.'.'.!'.'.'.!!!!! 


of tons,  and  noted  with 

In  due  form  of  law,  his  Protest  for  the  uses  and  purposes  hereinafter  mentioned       And  now.  on  this 

day.  to  wit.  the  day  of  the  date  hereof,  before  me a  Notary 

Public  In  and  for  the  County  of In  the  State  of  New  York. 

duly  commissioned  and  sworn,  comes  the  said  Master,  and  requires  me  to  extend  his  said  Protest,  and 
together  with  him  come  and  appear 

all  belonging  to  the  aforesaid  vessel,  all  of  whom  being  by  me  severally  duly  and  solemnly  sworn  on 
the  Holy  Evangelists  of  Almighty  God,  voluntarily  and  freely  depose  and  say  that  the  said  vessel, 
laden  with 


being  in  every  respect  seaworthy,  and  in  all  things  flitted  and  provided  for  her  intended  voyage,  sailed 
on  the day  of 19.    . .  from 

(Hero  follows  statement  In  complete  detail  of  damages  or  losses  which  have  been  encountered  and 
concerning  which  the  master  denies  vessel's  responsibility  for  reasons  as  stated  hereafter,  or  for  reasons 
further  particularized  ) 

AND  the  said  deponents  on  their  oaths  declare,  that  the  said  ves.sci  was  at  the  commencement 
of  the  voyage  aforesaid,  staunch  and  strong,  and  had  her  cargo  well  and  sufficiently  stowed  and  her 
hatches  properly  closed  and  secured;  and  that  during  the  said  voyage  they  together  with  the  rest 
of  the  crew  on  board,  used  their  utmost  endeavors  to  preserve  the  said  ve.s.s(!l  and  her  cargo,  tackle 
and  apparel  from  damage  or  Injury.  AND  that  any  loss,  damage  or  Inlury  which  lias  ari.scn  or  accrued. 
or  that  may  arise  or  be  sustained.  In  any  way  or  manner  whatever  Is  solely  owing  to  the  accidents 
and  difficulties  herein  set  forth  and  declared,  and  not  to  any  negligence,  want  of  skill,  vigilance  or 
exertion  on  the  part  of  the  deponents,  or  any  of  the  officers  or  men  of  the  said  vessel. 

(Signed)     Masteb 


WHEREFORE,  the  said  Master  and  Commander  as  afor&sald.  hath  requested  me  to  PROTEST, 
and  I.  the  said  Notary,  at  such,  his  request  have  PKOTESTEU  and  by  these  presents  DO 
PUBLICLY  AND  SOLEMNLY  PROTEST  against  all  and  every  person  and  persons  whom  It  doth, 
shall  or  may  concern  and  against  all  and  singular  the  accidents  casualties  and  clrcunistances  already 
set  forth  in  the  foregoing  declaration,  on  oath,  for  all  manner  of  losses,  costs,  d.images.  charges 
expen.ses  and  injuries  what.soever.  which  the  said  vessel  and  her  cargo  on  board,  and  the  freight  by 
her  earned,  or  to  be  earned,  or  either  of  them,  or  any  part  thereof,  have  already  sustained,  or  may 
hereafter  sustain,  by  reason  or  means  ot  the  foregoing  premises. 

THUS  DONE  AND  PROTESTED   in  the  City  Of  New  York,  thia 

day  of in  the  year  of 

our  Lord  one  thousand  nine  hundred  and 

IN  TESTIMONY  WHEREOF,  I  have  heretmto  set  my  hand  and 
affixed  my -notarial  seal. 

(Signed) 

Notary  Public County  No. 

CITY   AND    COUNTY   »  „„ 
OF   NEW   YORK  f  ^- 

a  Public  Notary  In  and  for  the  State  of 

New  York.  County  of  duly  commissioned  and  sworn,  do  certify  the  fore- 
going to  be  a  true  and  exact  copy  of  an  original  Protest  made  before  me. 

IN  TESTIMONY.   WHEREOF,   I  have  hereunto  set  my  band 

and  notarial  seal    this   day  of 

one'thousand  nine  hundred  and 

Notary    Public County    No. 

Form  19. — Master's  Extension  of  Protest 


CHAPTER  VIII 

SHIPPING  DOCUMENTS  REQUIRED  BY  THE  UNITED  STATES 

GOVERNMENT 

In  addition  to  the  cargo  and  vessel  documents  required  by 
the  carriers  in  their  dealings  with  shippers,  consignees  and  char- 
terers and  in  the  conduct  of  their  transportation  business,  many 
official  documents  are  required  by  the  United  States  Government. 
They  may,  to  facilitate  description,  be  divided  into  (1)  general 
ship's  papers,  (2)  vessel  clearance  documents,  (3)  vessel  entry 
documents,  (4)  documents  required  of  exporters,  and  (5)  docu- 
ments required  of  importers. 

General  Ship's  Papers 

Each  vessel  engaged  in  the  overseas  trade  is  required  to  carry 

an  official  ship's  register  or  measurement  certificate  vi^hich  is 
obtained  from  the  registry  authorities  of  the  country  in  which 
it  is  documented.  American  vessels  obtain  their  certificates  of 
registry  from  the  Commissioner  of  Navigation,  Department  of 
Commerce,  under  whose  supervision  the  measurement  rules  of 
the  United  States  are  applied  by  the  admeasurers  of  the  Cus- 
toms Service.  The  certificate  indicates  the  name,  official  num- 
ber, and  ownership  of  the  vessel,  the  name  of  the  master,  when 
and  where  it  was  built,  the  home  port,  the  vessel's  principal 
dimensions,  and  other  identification  data,  the  capacity  of  the 
spaces  indicated  in  its  gross  tonnage,  the  space  exempted  from 
measurement,  the  spaces  deducted  from  gross  tonnage  and  the 
vessel's  net  register  tonnage.  A  copy  is  reproduced  in  Form  20. 
Preliminary  to  the  issue  of  a  certificate  of  registry  the  Govern- 
ment requires  a  builder's  certificate,  a  surveyor's  or  admeasurer's 
certificate,  an  owner's  oath,  a  master's  oath,  and  in  case  of  a 
vessel  sold  or  transferred  to  a  citizen  of  the  United  States  an 
official  hill  of  sale,  all  of  which  are  executed  on  forms  prescribed 
by  the  Commissioner  of  Navigation. 

115 


116 


OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


Form  20. — Certificate  of  Registry 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     117 


CERTIFICATE  OF  INSPECTION 

FOR  STEAM  OR  MOTOR  VESSEL 


THIS   CCRTiriCATC   CXPIRCS. 


^t^i 


United  States  of  America 

Department  of  Commerce 


STEAMBOAT-INSPECTION  SERVlce 


State  cf^ 


Digtrictof^ 


APPtKUTlOf*  in  writing  having  been  made  to  the  undersigned.  Inspectors  for  this  District,  to  inspect  the  above-named  vessel 
ptopelled  by  -  .  .j  ol  ,  .  '  ,  in  the  State  of. 

'  W  hprecii  ,  , ,.       .    , ._   ,,,     ,,    ,, ,     ,,  .,..,^,.„ ,-. ..,    ,    ..^ ^ 


«, day  of , 

in  the  State  of 


_._„ , fs  Master,  said  inspectors,  having  completed  the  inspection  of  the  vessel  on  the 

-^.,  191    ,  DO  CERTIFY  that  the  said  vessel  was  built  at .^ » 

_»in  theyeaf  1 ;  rebuilt  in  the  year  i ;  that  the  Hull  is  constructed  of ; 

.  >.   .-■■,.      .— .—  gross  tons;  that  the  said  vessel  has  ,  . , ..   .  Staterooms  and  _ _.  Berths,  and  is 

_  First-cabin,  ^ w.  Second-cabin,  and Deck  or  Steerage  Passengers. 


and,  as  shown  by  cfiiciaj  records,  is  of  _ 

allowed  to  carry  ^ passenger; 

Of  the  deck  crew  (which  includes  boatswains,  quartermasters,  apprentices,  seamen  or  deck  hands),  hereinafter  specified  and  designated, 
40  per  cent  thereof,  excluding  apprentices,  must  be  certificated  able  seamen.  After  November  4, 1916, 45  per  cent  thereof  must  bejcerti/icated 
able  sfiamen.    tnctuded  in  the  entire  aew  bereinaftci  specified  and  designated  there  roust  be  -r cettific^ited  lifeboat  men. 


also  Is  requlied  to  any  a  full  complement  ol  officers  and  crew,  consisting  rS    -     liansed  »***^  licensed  Master  ind  Pilot,  -^ -■ 

Ticensed  Pilot  ,  .«,^-,.. licensed  Mate   t--^'^^  Quartermaster   , ^.  Able  Seamen,  .  ,  ....    Seamen,  .^. Appf entices,  _«_  Dedt 

Hand  ,  ««^ certificated  Lifeboat  Men,  „ «.  licensed  Chief  En^neer, _..  licensed  Assistant  Engineer   ,  r^,,    ,     licensed  Junioi 

Engineer   » Water  Tender   ». ™„Oilef   , Firemen, , Coal  Passer    , Wiper    ,      ,.  .  .,  Watrhmpn,  and  ak^ 

''^r'T'^  ''*^*T»rsmi5-CThp[TTtfPrtMlTi-StPt<rn[r^^nr»TirtTFrriPi^  nut  rormfrtpd -with -the-  rraytgatieft-*^  the-v*flftgi  ;-4hftt  the  ^aid  \i(L<Af\  is  pro- - 

vkted  with  .,„ .^  Condensing  Engine    of ,,..  ,    .,... inches  diameter    of  cylinder    and ^ feet  stroke  of  piston,  and 

_..  Boiler    ,  ....^.^..^..^n-  feet  irV  tength  and ,  Inches  in  diarneter,  madrf  of  lawful  ,.,,,.      ,  in  the  year  '  ,t.»-  , 

reljuilt  In  the  yeai  1,.-, -,     The  said  vessel  is  permitted  to  navigate,  for  one  year^  the  waters  of  the , ^,    .  ,.-     . ,     ,.        . '  ^ 

,.__- ,  between  .«„, 


» and  touching  at  intermediate  ports,  a  distance  of  about . 


.  miles  and  retunu 


WlB  PURTHBR  CBWTIFV  that  the  Said  vessel  at  the  date  hereof  b,  in  aJI  things,  in  conformity  with  the  laws  govemng  tfeC  SteamtKttW 
iospect'on  Service  arid  Uie  Rules  and  ReguUtions  of  the  Board  of  Supervising  Inspectors. 

THK    rOt-bOWINO   PAR'flOUI.ARS   Or   INaPCOTION   JU*e    KNUM 


*" k*r>I 


ftt»«  t>  knl  bxKcln'aQhiii 

B^ikd iOM 

-. 

l„rtt..il...l 

t 

^ 

f>_i_^«,                   a^ 

Skua  ta  poHR.  4Nt^«a«,  lta._ 

DONKEv  soaaRai 


.,^. 

..-_*»,». 

..w 

•"-^ 

T  1>At, 

Bri-mnr  ,(ti»» 

mU  u 

tatn 

Stall  e/ 


:i» 


mm»  iupteUm  qi  BdUrt, 


„to  before  me  this _ 


.day  flf„ 


.,  Inspector  of  Boilers. 


Off iCft  erf  ^  Ji.  %£icja  SnfipecUrtjSq 
itatria  of  (fort) ,.         


-,101 


Wa  HBREBT*  aRTlFt  that  the  above  certificate  is  a  true  copy  of  tb«  original  Issued  by  this  oflSce  to  the  vessel  najned  herein. 


t  rorbtddeo  to  carry  merchaikEse  of  puaenen  for  pty,  unless  upon  change  cf  character  by  th*  Iwpcrtors  of  the  Stttunboat-lnspectJoo  Service. 


Form   21. — Certificate  of   Inspection 


118       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Vessels  are  also  required  to  carry  an  inspection  certificate 
issued  by  the  United  States  Steamboat  Inspection  Service,  De- 
partment of  Commerce.  The  certificate  for  American  steam  or 
motor  vessels  reproduced  in  Form  21  is  issued  after  careful  in- 
spection of  hull,  boilers  and  equipment  and  in  addition  indicates 
the  required  complement  of  officers  and  crew  and  the  maximum 
number  of  passengers  which  the  vessel  may  carry.  It  is  signed 
by  an  inspector  of  hulls  and  an  inspector  of  boilers  and  it  ex- 
pires at  the  end  of  one  year.  The  forms  of  inspection  certificate 
for  American  steamers  and  motor  boats,  for  sailing  vessels  and 
barges  carrying  passengers  for  hire,  for  sea-going  barges  of 
100  tons  gross  register  or  over,  and  for  foreign  steamers  carry- 
ing passengers  differ  in  various  respects. 

Documents  Required  on  Clearing  a  Vessel  in  the  Foreign 

Trade 

In  the  overseas  trade  the  crew  of  an  American  vessel  engaged 
at  an  American  port  is  signed  up  before  a  United  States  Shipping 

Form  22a. — SnippiNo  Aiiticles 

^..••i>>.«DKa.M       Mf^vi,Mi     r-t^         DEPARTMENT'OF  COMMEHCE 

FORM  705a  shipping    articles         doreau  of  navigation 

SHIPPING   SERVICE 

Notice  l8  hereby  given  that  Section  4519  of  the  U,  S.  Revised  Ptatutea  makes  It  obligatory  on  the 
part  of  the  master  of  a  merchant  vessel  of  the  United  States,  at  the  commencement  of  every  voyage 
or  engagement,  to  cause  a  legible  copy  of  the  agreement  (omitting  signature)  to  be  placed  or  posted 
up  In  such  part  of  the  {vessel  aa  to  be  accessible  to  the  crew,  under  a  penalty  not  ezceeUiDg 
Onb  Hundred  Dollars 

EUGENE    T.    CHAMBERLAIN. 

Commissiomr  of  Navigation. 

ADVANCE   WAGES   AND   ALLOTMENTS. 

SEC.  10  (a)  That  It  shall  bo,  and  l.s  hereby,  made  unlawful  In  any  case  to  pay  any  seaman  wages 
In  advar:ceof  the  time  when  h<'  has  actually  pstrned  the  same,  or  to  pay  such  advance  wages,  or  to  make 
any  order,  or  note,  or  other  evidence  of  Indebtedness  therefor  to  any  other  person,  or  to  pay  any  person, 
for  the  shipment  of  feamen  when  payment  is  de<iucted  or  to  be  deducted  from  a  seaman's  wages. 
Any  person  violating  any  of  the  fure^;<)liig  provisions  of  this  section  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  upon  conviction  shall  be  piiiiislicil  by  a  line  of  not  less  than  $25  nor  loore  than  JlOO, 
and  niay  also  be  Imprisoned  for  a  p(?rlo<l  tA  nut  e.\iec(llng  six  months,  at  the  discretion  of  the  court. 
The  payment  of  such  advance  wages  or  ullotnienl  shall  In  no  c.xse  except  us  herein  provided  absolve 
the  vessel  or  the  nuuster  or  the  owner  thereof  from  the  full  payment  of  wages  after  the  same  shall 
have  been  actuaKy  earned,  and  sliall  be  no  defense  to  a  libel  suit  or  action  for  the  recovery  of  such 
wages.  If  any  pcr.son  shall  demand  or  receive,  either  directly  or  Indirectly,  from  any  seatnan  or  other 
person  seeking  cniploynMiit.  aa  seamen,  or  from  any  person  on  his  behalf,  any  remuneration  whatever 
for  providing  hliu  with  employuicnt.  he  shall  tor  every  such  oflensc  be  deemed  guilty  of  a  mis- 
demeanor and  shall  be  Imprisoned  not  more  than  sin  months  or  fined  not  more  than  $.')00. 

(bj  That  It  shall  be  lawful  for  any  .seaman  to  stipulate  lu  hLs  shipping  agreement  for  an  allotment 
of  any  portion  of  the  w.-\g(s  he  may  earn  to  liLs  gr.indparents.  parents,  wile,  sister,  or  chiliren. 

(c)  That  no  allotment  shall  be  valid  unless  In  writing  and  signed  by  and  approved  by  the  slii;;ping 
comral.ssloner.  It  shall  be  the  duty  of  the  said  coniml.s.sloner  to  examine  such  allotments  and  the 
parties  to  them  and  enforce  compliance  with  the  law  All  sllpul.itlons  for  the  allotment  of  any  part 
of  the  wages  of  a  seaman  during  his  absence  which  are  made  at  the  commencement  of  the  voyage 
shall  be  Inserted  In  the  agreement  and  shall  state  the  amounts  and  times  of  the  payments  to  be  made 
and  the  persons  to  wl.um  the  payments  arejlo  be  m.ide 

(d)  That  no  allotnunt  except  as  provided  for  in  this  section  shall  be  lawful.  Any  person  who 
shall  falsely  claim  to  be  such  relation,  a-s  above  described,  of  a  seaman  under  this  .section  shallWor 
every  such  offense  be  punlshe<l  by  a  One  not  exceeding  $J00  or  Imprisonment  not  exceeding  six  montns, 
at  the  dLscretlon  of  the  court. 

(e)  That  this  section  shall  apply  as  well  to  foreign  vessels  while  In  waters  of  the  United  states, 
as  to  vessels  of  the  United  States,  and  any  master,  owner,  consignee,  or  agent  of  any  foreign  vessel 
who  has  violated  Its  provisions  shall  be  liable  to  the  same  penalty  that  the  master,  owner,  or  agent 
of  a  vessel  of  the  Unliwl  .States  would  be  for  similar  violation. 

The  master,  owner,  consignee,  or  agent  of  any  vcR.sel  of  the  United  St.ites,  or  of  any  foreign  vessel 
seeking  clearance  from  a  port  of  the  United  Stales  shall  present  his  shipping  articles  at  the  oITlce 
of  clearance,  and  no  clearance  shall  be  granted  any  such  ves.scl  unless  the  provisions  of  this  section 
have  been  complied  with.— .-U<  of  June  t6.  is:i/,.  as  nnnndtd  by  the  Acts  of  June  19.  1886;  December  SI, 
1898;  Apriise,  1904;  June  S8,  1900,  sec.  4.  ana  March  4,  1016- 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT    119 

FOEM  22A. — SHippiNa  ABTICLES  (Continued) 
VESSELS   OF   UNITED   STATES   MUST   HAVE   SLOP-CHESTS,    ETC. 

SEC.  11.  That  every  vessel  mentioned  In  section  forty-five  hundred  and  sljcty-nlne  of  the  Revised 
Statutes  shall  also  be  provided  with  a  slop-chest,  which  shall  contain  a  complement  of  clothing  for 
the  intended  voyage  for  each  seaman  employed.  Including  boots  or  shoes,  hats  or  caps,  under  clothing 
and  outer  clothing,  oiled  clothing,  and  everything  necessary  for  the  wear  of  a  seaman;  also  a  full 
supply  of  tobacco  and  blanliets.  Any  of  the  contents  of  the  slop-chest  shall  be  sold,  from  time  to  time 
to  any  or  every  seaman  applying  therefor,  for  his  own  use.  at  a  profit  not  exceeding  ten  per  centum 
of  the  reasonable  wholesale  value  of  the  same  at  the  port  at  which  the  voyage  commenced.  And  If 
any  such  vessel  is  not  provided,  before  sailing,  as  herein  required,  the  owner  shall  be  liable  to  a  penalty 
of  not  more  than  five  hundred  dollars.  The  provisions  of  tills  section  shall  not  apply  to  vessels  plying 
between  the  United  States  and  the  Dominion  of  Canada,  Newfoundland,  the  Bermuda  Islancfe,  the 
Bahama  Islands,  the  West  Indies,  Mexico,  and  Central  America. — Act  June  S6,  18S.',. 

Every  vessel  bound  on  any  foreign  voyage  exceeding  in  length  fourteen  days  shall  also  be  provided 
with  at  least  one  suit  of  woolen  clothing  for  each  seaman,  and  every  vessel  In  the  foreign  or  domestic 
trade  shall  provide  a  safe  and  warm  room  for  the  use  of  seamen  In  cold  weather.  Failure  to  make 
such  provision  shall  subject  the  owner  or  master  to  a  penalty  of  not  less  than  one  hundred  dollars. — 
Sec.  ^/JJS.  R.S.,  as  amended  by  the  Act  of  December  SI.  1898. 

Vessels  engaged  In  the  whaling  or  fishing  business  are  not  covered  by  the  above  provisions  of  law, 
or  by  the  regulations  below  regarding  scale  of  provisions. 

CORPORAL   PUNISHMENT   PROHIBITED. 

Flogging  and  all  other  forms  of  corporal  punishment  are  hereby  prohibited  on  board  of  any  vessel, 
and  no  form  of  corporal  punishment  on  board  of  any  vessel  shall  be  deemed  justifiable,  and  any  master 
or  other  ofBcer  thereof  who  shall  violate  the  aforesaid  provisions  of  this  section,  or  either  thereof,  shall 
be  deemed  guilty  of  a  misdemeanor,  punishable  by  Imprisonment  for  not  less  than  three  months 
nor  more  than  two  years.  Whenever  any  ofBcer  other  than  tha  (master  of  such  vessel  shall  violate 
any  provision  of  this  section,  it  shall  be  the  duty  of  such  master  to  surrender  such  officer  to  the  proper 
authorities  as  soon  as  practicable,  provided  he  has  actual  knowledge  of  the  misdemeanor,  or  com- 
plaint thereof  is  made  within  three  days  after  reaching  port.  Any  failure  on  the  part  of  such  master 
to  use  due  diligence  to  comply  herewith,  which  failure  shall  result  In  the  escapejof  such  oflacer,  shall 
render  the  master  of  vessel  or  the  owner  of  the  vessel  liable  In  damages  for  such  flogging  or  corporal 
punishment  to  the  person  Illegally  punished  by  such  officer. 


ARTICLES  OF  AGREEMENT  BETWEEN  MASTER  AND  SEAMEN  IN  THE  MERCHANT 

SERVICE   OF   THE   UNITED   STATES. 

ReQtiired  by  Act  of  Congress,  Title  LIU,  Revised  Statutes  of  tbe  United  States. 


Office  of  the  U.  S.  Shipping  Commissioner  for  the  Port  of  Philadelphia.  Pa..  June  5.  1916. 

IT  IS  AGREED  between  the  Master  and  seamen,  or  mariners,  of  the  steamship  Saracen  of  which 
Capt.  John  Brown  is  at  present  Master,  or  whoever  shall  go  for  il:  .L:nrr,  now  bound  from  the  Port  of  (i) 
Philadelphia.  Fa.,  to  Liverpool,  England,  and  sttch  other  ports  and  places  in  any  part  of  the  world  as 
the  Master  may  direct,  and  back  to  a  final  port  of  discharge  in  the  United  Statei,  for  a  term  of  time  not 
exceeding  eight  (.8)  talendar  moruhs.W 

GOING   ON   SHORE   IN   FOREIGN 'PORTS   IS   PROHIBITED 

EXCEPT  BT  PERMISSION  OF  THE  MASTER 

No  dangerous  weapons  (»)  or  grog  allowed,  and  none  to  be  brought  on  board  by  the  crew. 


SCALE  OF  PROVISIONS  to  be  allowed  and  served  out  to  the  Crew  during  the  voyage  In  addition 
to  the  daily  Issue  of  lime  and  lemon  juice  and  sugar,  or  other  antiscorbutics  in  any  case  required  by  law. 


Sun- 
day. 


Mon- 
day 


Tues- 
day. 


Wednes- 
day. 


Thurs- 
day. 


Fri- 
day. 


Satur- 
day. 


Water 

Biscuit 

Beef,  salt 

Pork,  salt 

Flour 

Canned  meat 

Fresh  bread 

Fish,  dry,  preserved,  or  fresh 

Potatoes  or  yams 

Canned  tomatoes 

Pease 

Beans 

Rice 

Coffee  (green  berry) 

Tea 

Sugar 

Molasses 

Dried  fruit 

Pickles 

Vinegar 

Com  meal 

Onions 

Lard 

Butter 

Mustard,  pepper,  and  salt 
sufficient  for  seasoning. 


quarts 

pound 

pounds 

pound 

pound 

pound 

pounds 

pound 

pound 

pound 

pint 

pint 

pint 

ounce 

ounce 

ounces 

pint 

ounces 

pint 

pint 

ounces 

ounces 

ounce 

ounce 


1 

IH 


IH 

i"' 


'i'A' 
i" 


1 

i« 


6 

H 
IM 


1  " 


IH 

1 

1 

H 


5 
Hi 


l>i 


Butter  and  lard  allowances  are  misstated  above.     Figures  should 
read;     Two  ounces  of  butter  and  one  ounce  of  lard  for  each  day. 


120       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


FORM  22A  SmPPINO  ARTICLES   (ConflnMcd) 
SUBSTITUTES. 

One  pound  of  flour  dally  mar  ^e  substituted  for  the  dally  ration  of  biscuit  or  fresli  bread:  two  ounces 
of  dpslcratod  vesctablcs  for  one  pound  of  potatoes  or  yams;  six  ounces  of  hominy,  oatmeal,  or  cracked 
wheal,  or  two  ounoos  of  laploea,  for  sU  ounces  of  rice;  six  ounces  of  canned  vegetables  for  one-half 
pound  of  canned  toinaioes;  (me-elKhth  of  an  ounce  of  tea  for  three-fourths  of  an  ounce  of  coffee; 
three-fourths  of  an  ounce  of  coiTee  for  one-elchth  of  an  ounce  of  tea;  six  ounces  of  canned  fruit  for 
three  ounces  of  dried  fruit;  one-half  ounce  of  lime  Juice  for  the  dally  ration  of  vinegar;  four  ounces 
of  oatmeal  or  cracked  wheat  for  one-half  pint  of  corn  meal;  two  ounces  of  pickled  onions  for  four 
ounces  ofKresh  onions. 

When  tlie  vessel  Is  In  port  and  It  Is  possible  to  obtain  the  same,  one-and-one-half  pounds  of  fresh 
meat  shall  be  Bubstltute<l  for  the  dally  rations  of  salt  and  canned  moat;  one-half  pound  of  (treen 
cabbage  for  one  ration  of  canned  tomatoea;*one-half  pound  of  fresh  fruit  for  one  ration  of  dried  fruit. 
Fresh  fruit  and  vegetables  sliall  be  served  while  In  port  If  obt,alral)Io.  The  seamen  sh.all  have  the 
option  of  accepting  the  fare  the  master  may  provide,  but  the  right  at  any  lime  to  demand  the  foregoing 
scale  of  provisions. 

TheSforegoIng  scale  of  provisions  shall  be  Inserted  In  every  article  of  agreement,  and  shall  not  be 
reduced  by  any  contract,  except  as  above,  and  a  copy  of  the  same  shall  be  posted  In  a  conspicuous 
place  In  the  galley  and  In  the  forecastle  of  each  vessel. 

And  tha  said  crew  agree  to  conduct  themselves  In  an  orderly,  faithful,  honest,  and  sober  manner, 
and  to  be  at  all  times  diligent  In  their  respective  duties,  and  to  be  obedient  to  the  lawful  commands 
of  the  said  Master,  or  of  any  person  who  shall  lawfully  succeed  him,  and  of  their  superior  ofHcera, 
In  everything  relating  to  the  vessel,  and  the  stores  and  cargo  thereof,  whether  on  board,  in  boats, 
or  on  shore;  and  In  consideration  .of  which  service  to  bo  duly  performed  thclsald  Master  hereby 
agrees  to  pay  to  the  said  crew,  as  wages,  the  sums  against  their  names  respectively  expressed,  and 
to  supply  them  v/Uh  provisions  according  to  the  foregoing  scale.  And  It  Is  hereby  agreed,  that  any 
embezzlement  or  wlUIul  or  negligent  destruction  of  any  part  of  the  vessel's  cargo  or  stores  shall  be 
made  good  to  the  owner  out  of  the  wages  of  the  person  guilty  of  the  same.  And  If  any  person  enters 
himself  as  qualiflcd  for  a  duty  which  he  proves  himself  Incompetent  to  perform,  his  wages  shall  be 
reduced  In  proportion  to  his  Incompetency.  And  It  Is  al.so  agreed  that  If  any  member  of  the  crew 
considers  himself  to  be  aggrieved  by  any  breach  of  the  agreement  or  otherwise,  he  shall  represent 
the  same  to  the  Master  or  oDlcer  In  charge  of  the  ship  In  a  QuIct  and  orderly  manner,  who  shall  there- 
upon take  such  stepslaa  the  case  may  rcQulre. 


It  is  also  agreed  that  (*)  the  crew  shall  load  and  discharge  cargoes,  tccp  their  respective  Quarters  clean,  and 
Kort  on  the  day  of  discharge  until  6  o'clock  v.  M..-  that  any  dlapxitc  relative  to  wages,  provisions  and  tinea 
between  the  Master  or  any  officer  of  the  vessel,  and  any  member  of  the  crew  shall  be  submilled  to  a  U.  S. 
Shipping  Commissioner  or  Corisul,  and  that  any  decision  rendered  by  him  shall  be  binding  upon  both 
parties  and  shall,  in  any  legal  proceeding  which  may  be  taken  in  the  matter  before  any  court  of  justice, 
be  deemed  concluilte  of  the  rights  of  the  parties  as  to  such  a^estion  or  subject^  of  dispute, 

A.  R.  smuh,  u.:s.  src. 


The  authority  of  the  Owner  or  Agent  for  the 
allotments  mentioned  wlthln^lsjlnimylpos- 
Bcsslon. 

A     t>    c-„.i,i,  f  Shipping  Commissioner  or 
A.  R.  Smith[         Consular  Officer. 

This  Is  to  be  signed  If  such  an  authority  has 
been  produced,  and  to  be  scored  across  In  Ink  If 
tt  has  not. 


Iff  \WITNESS  WHEREOF  the  said  parties 
have  subscribed  their  names  on  the  other  side  or 
sides  hereof  on  the  days  against.'thcir  respective 
signatures  mentioned. 

Signed  by  John  Brown,' Master,  on  the  6th 
day  of  June,ll916. 


DATE  OF 

COMMENCEMENT 
OF  VOYAGE. 

PORT  AT 

WHICH  VOYAGE 

COMMENCED. 

THESE  COLUMNS  TO  BE  FILLED  UP  AT 
THE  END  OF  THE  VOYAGE. 

Date  of 

Termination 

OF  Voyage 

Port  at  which 

Voyage 

Terminated. 

DATE  OF  Delivery 
OF  Lists  to  Snie- 

PING  COMMLSSIONER 

I  hereby  declare  to  the  truth  of  the  entries  In  this  Agreement  and  account  of  crew.  etc. 


1.  Here  the  voyage  Is  to  be  described,  and  the  places  named  at  which  the  ship  la  to  touch;  or.  If 
that  can  not  be  done,  the  general  nature  and  probable  length  of  the  voyage  la  toibe  stated.Jand  the 
port  or  county  at  which  uhe  voyage  is  to  terminate. 

2.  If  these  words  are  not  necessary  they  must  be  stricken  out.  j  .i.    ,,,.,,    „„ 

3.  Sec.  4()0S.  R.  S.,  prohibits  the  wearlng.of  sheath-knlves.on  shipboard,  and  the  Master  Informs 

l.^^'^'nere  any  other  stipulations  may  be  hiserted  to  which  the  parties  agree,  and  which  are  not 

jJb!"— Forms  must  not  be  unstitched.  No  leaves  may  be  taken  out  of  It,  and  none  added  or  sub- 
stituted. Care  should  be  taken  at  the  time  of  engagement  that  a  sufflciently  large  form  Is  used. 
If  more  men  are  engaged  during  the  voyage  than  the  number  for  whom  signatures  are  provided  In 
this  form,  an  additional  form  should  be  obtained  and  used.  „    ,  ^  ^    „  ot.j.r.«i.,„ 

Any  Erasure.  Interlineation,  or  Alteration  in  this  Agreement  will  be  void,  unless  attested  by  a  Shipping 
Commtisioner,  ConsiO-Generai,  Consul,  or  Consular  Agent,  to  be  made  with  the  consent  of  the  persons 
interested. 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT    121 

Commissioner,  or  at  ports  where  such  official  is  not  stationed, 
before  the  collector  or  deputy  collector  of  customs;  and  at 
foreign  ports  before  a  consular  officer  or  commercial  agent  if 


uonxrxna  or  siaman 


^ 


t.i'./vrf'i^.  g^ 


BIRrHTLACE. 


•/r?.^ 4UA\^ 


Mn. 


•&ai 


l^..^i.  22B. — (Back  of  Form  22A) 

such  officer  is  located  at  the  port  of  shipment.  The  document 
signed  is  known  as  the  Shipping  Articles  and  is  the  official  agree- 
ment between  master  and  crew,  as  to  wages,  scale  of  provisions, 


ORe>^   UIST 


0^  Sirilrb  &tatfa  of  Amnlfa 

Department  of  commcrcs 


Pmoia  cempoiiiig  Hit  Crem  of  tH  American^ 


coM  the. 


Form  23A. — Crew  List 


period  of  service  and  conditions  of  labor,  and  also  embodies  the 
sections  of  the  United  States  navigation  laws  with  reference  to 
advanced  wages  and  allotments,  medicine  and  slop-chest  and 
corporal  punishment  (see  Forms  22a  and  22b). 


122       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

I, ,   Master  of  the  said   American    , 

do  solemnly,  sincerely,  and  truly  swear  that  the  within  List  contains 
the  names  of  all  the  Crew  of  the  said  vessel,  together  with  the  places 
of  their  birth  and  residence,  as   far  as  I  can  ascertain  the  same. 

Master 

Port  of   

Subscribed  and  sworn  to  this day  of  ,  191..,  before  me. 

Deputy  Collector. 
Form  23B,  Reverse, — Oath  of  Master  Certifying  Crew  List 

Before  clearance  the  master  of  an  American  vessel  is  similarly 
required  to  produce  two  copies  of  its  crew  list,  containing  the 
name  and  description  of  every  member  of  the  crew,  the  capacity 
in  which  he  is  employed,  his  birthplace,  citizenship,  and  the  resi- 
dence or  address  of  his  next  of  kin.  One  copy  is  certified  and 
used  on  return  of  the  vessel  to  the  United  States  in  accounting 
for  its  crew  to  the  Collector  at  the  port  of  entrance.  Both  the 
ship's  articles  and  the  crew  list  carried  on  board  the  vessel  must 
upon  request  be  produced  before  any  consul  or  commercial  agent 
of  the  United  States  (see  Form  23a). 

Under  the  Seamen's  Act  of  1915  the  vessel's  master  before 
clearing  makes  oath  to  the  effect  that  the  vessel  "has  a  crew  of 

persons,  of  which  not  less  than  75  per  cent,  thereof,  in  each 

department,  are  able  to  understand  any  order  given  by  the  officers 
of  the  vessel,  that  all  of  the  said  crew  were  duly  shipped  at  this 

port  before  a  United   States   Shipping  Commissioner  on  , 

191 — ,  and  not  less  than  40  per  cent,  of  the  deck  crew,  viz.,  mem- 
bers thereof,  of  the  vessel  are  able  seamen,  duly  qualified  as 
such,  as  required  by  Section  13,  the  Seamen's  Act  of  March  4, 
1915,  and  that  none  of  the  members  of  the  crew  so  shipped  at 
this  port  has  been  paid  any  advanced  wages  or  been  permitted 
to  assign  any  part  of  his  wages  due  or  to  become  due  and — that 
the  provisions  of  the  said  Seamen's  Act,  so  far  as  they  relate  to 
the  said  vessel,  have  been  fully  complied  with."  The  prescribed 
form  of  this  oath  is  shown  in  Form  24.  The  master  or  agent  is 
similarly  required  to  certify  on  the  prescribed  form  shown  in 
Form  25  as  to  the  vessel's  equipment  with  proper  radio  appli- 
ances and  operators  as  required  by  the  acts  of  June  24,  1910,  and 
July  23,  1912. 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     123 


Custom  House,  N.  Y. 
Multi  Form  No.  AMERICAN. 

B-2. 


United   States    Custom    Service 
COLLECTION  DISTRICT  NO.  10,  PORT  OF  NEW  YORK 


.John  Brown ,  being  duly  sworn,  says; 


That  he  is  master  of  the   S.   S Saracen clearing   from 

this  port  this  day;  that  the  said  vessel  has  a  crew  of  ..75..  persons,  of 
which  not  less  than  75%  thereof,  in  each  department,  are  able  to  under- 
stand any  order  given  by  the  officers  of  the  vessel;  that  all  of  the  said 
crew  were  duly  shipped  at  this  port  before  the  U.  S.  Shipping  Com- 
missioner on    ..July  22 ,   1919;   and  that  not  less   than   40%   of   the 

deck  crew,  viz.,  members  thereof,  of  the  vessel  are  able  seamen,  duly 
qualified  as  such,  as  required  by  section  13  of  the  Seamen's  Act  of 
March  4,  1915,  and  that  none  of  the  members  of  the  crew  so  shipped 
at  this  port  has  been  paid  any  advance  wages  or  been  permitted  to 
assign  any  part  of  his  wages  due  or  to  become  due;  and, 

I  further  swear  that  to  the  best  of  my  knowledge  and  belief  the 
provisions  of  the  said  Seamen's  Act,  so  far  as  they  relate  to  the  said 
vessel,  have  been  fully  complied  with. 


Sworn  to  before  me  this..-?^..  Master. 

day  of July IPlp. . 

Form  24. — Master's  Oath  Under  Seamen's  Act 


If  it  is  desired  to  load  ballast,  cargo  or  fuel  after  sunset  a 
permit  must  be  obtained  from  the  customs  authorities.  This 
was  until  recently  granted  in  a  special  permit  form,  but  ha?  been 
consolidated  with  other  forms  into  the  "general  permit  to  lade  or 
unlade"  which  is  reproduced  in  the  section  containing  vessel 
entry  documents  (Form  39).  Before  a  cargo  steamer  clears, 
the  master  is  required  to  make  oath  that  his  vessel  will  not  carry 
on  the  present  voyage  any  passengers  or  persons  not  regularly 
entered  upon  its  shipping  articles  as  a  member  of  the  crew  (see 
Form  26). 


124       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


SV>rm753B 

MASTeR'$  CERTIFiCATt  Of  RADIO  APPARATUS 


NonCE.— "Tb«  radio  ^ulpment  must  be  In  charpe  of  two  or  more  persons  skilled  In  the  nse  of  snrt) 
apparatus,  one  or  ibeotber  of  whom  shall  be  on  duty  at  all  times  nnile  the  vessel  Is  being  naTigated. 
Such  equipment,  operators,  the  Tieeiilatlon  of  their  watches,  and  the  transmission  and  receipt  of  mes- 
ages,  except  as  may  be  regulated  by  law  or  International  aRrecmont,  shall  bo  under  the  control  of  tho 
master,  lathe  case  of  a  vessel  of  the  United  States;  and  every  willtul  failure  on  the  part  of  tho  master 
to  enforce  at  sea  the  provisions  of  this  paragraph  as  to  equipment,  operators,  and  •watcbos  shall  subject 
oJm  to  a  penalty  «f  one  hundred  dollars. "— iicfc/ywyje;*,  ;s;2.  " 


CLEARANCE 


DEPARTMENT  OF  COMMERCE 

BUREAU  OF  NAVIQATIOM 

RADIO  SERVICE 


Port  of. 


;NEWJORK 


_. .July.JZZ.^ »«^  191  9 

■This  is  to  certify  that  I  have  to-day  examined 
the  apparatus  for  radio  communication  on  the 
~-.....?.?Ji.1'.i<.?.^     „ ..  s.  s.      War  Spaniel 

(Natlonafity!)'""''~*' »■'— -  .^-^ 


of  which  I  am-mastier,  ahout  to  leave  this  port  for 

«—..«, ..,^..,..^.Xi.7£.rp.Q0l....^ . ,  and  J  have  fQxmd 

the  same  efficient  and  in  good  working  order,  as 
prescribed  hy  the  act  of  Juno  24,  1910,  as  amended 
by  the  act  of  July  23,  1912. 


(Signed) 

Master. 


Form  25.— Certificate  of  Radio  Apparatus  When  Clearing 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT      125 


'OH. -MB.  MM 


OATH  OP  MMrren  op  rotwioN  stbam  vcssbl  oleafiino  without  PASseNoeoa 
(iM. icT.<ii  III  [  tnjifii  I  rf mn 


Department  op  Commerce 

BUREAU   or   KAVIdATION 


<^. 


-..,  matter  of  th» 


.  St«am«r  named  the  _/^rvr.<W...r 
-_  bound  flvm  Ote  Port  of !??ir»rtiL 

!  of *^>rrr^.:.3tT.:S...^.:r^ in  ^ <!omr,.^.^ 


rS)»y to  the 

Port  of ^esr^saessr:^ in  ^ lS-r,._.^ ^ .  lAth  freight 

{or  haOast)  only,  do  solemnly  sxoear  {or  affirm)  that  taid  steart%er  xiM  not  carry  upon 
the  pre»«nt  voyage,  ftom  any  jtmerlcan  port,  any  C^btn,  Steerage,  Deck,  or  other 
'  Clots  Pasaenger,  nor  any  person  whatever  not  regularly  entered  upon  the  shipping 
wUdet  of  the  eteamer  at  a  member  of  the  erew  rendering  service  as  such. 


C7l 


>,_^_^L:x^. 


Subsaibed  and  ewom  to  bnfore  me  this . 
of f.  ..„ ,  J9 


-day 


OMet^cr  of  Customs, 


Form  26. — Oath  of  Master  of  Steam  Vessel  Clearing  Without  Pas- 
sengers 


126       OCEAN  STEAMSHIP  TRAFEIC  MANAGEMENT 

Custom  House,  N.  Y. 
Multi  Form  No. 
B-13. 

OATH  OF  MASTER  ON  CLEARANCE  OF  VESSEL  FOR  PORTS 
IN   ARGENTINA   OR   MEXICO,   GREAT   BRITAIN   OR 
IRELAND,  OR  ANY  OF  THE  COUNTRIES 
OF    CONTINENTAL    EUROPE 

United  States  Custom  Service 

COLLECTION  DISTRICT  NO.  10,  PORT  OF  NEW  YORK 

DISTRICT  OF  NEW  YORK 


ss. 
PORT  OF  NEW  YORK 

I R.  0.  Jones ,  do  solemnly,  sincerely  and  truly 

swear    that    I    am    the    master    of   the    steamship    or    vessel    called    the 

....British   S.   S.    War  Spaniel for  which  clearance  is  this  day 

requested,  and  that  no  meat  or  meat  food  products,  as  defined  and 
classified  by  the  Department  of  Agriculture,  are  or  will  be  included  in 
the  cargo  of  the  said  steamship,  or  vessel,  unless  such  meat  or  meat 
food  products  are  duly  marked  "U.  S.  Inspected  and  Passed,"  and  that 
the  certificates  covering  same,  required  by  the  regulations  of  the  Bureau 
of  Animal  Industry,  Department  of  Agriculture,  known  as  Regulations 
25  B.A.  I.  Order  No.  150,  have  been  obtained  from  the  Department  of 
Agriculture  and  are  herewith  filed  with  the  master's  manifest,  or  will 
hereafter  be  filed  with  the  supplemental  manifest  of  the  cargo  of  said 
vessel. 


Master 
Subscribed  and  sworn  to  before  me 
this    ..^2..   day  of    ....July ,   1919. 

Form  27. — Oath  of  Master  Under  Meat  Inspection  Law 

If  meat  or  meat  food  products  are  included  in  cargoes  destined 
for  Argentina,  Mexico,  Great  Britain  or  any  of  the  Continental 
countries  of  Europe,  the  master  is  also  required  to  swear  that 
none  will  be  included  unless  duly  marked,  "United  States  In- 
spected and  Passed,"  and  covered  by  export  inspection  certificates 
of  the  Department  of  Agriculture  which  are  filed  with  the  ship's 
manifest  (see  Form  27).  A  Port  Sanitary  Stateonent  showing 
the  number  of  cases  of  and  deaths  from  various  contagious 
diseases  reported  at  its  port  of  clearance  during  the  preceding 
two  weeks  needs  to  be  obtained  from  the  United  States  Public 
Health  Service  (see  Form  28),  and  any  bills  of  health  that  may 
be  required  by  foreign  countries  must  be  obtained  from  their 
respective  consular  authorities. 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     127 

The  ship's  manifest,  described  in  the  preceding  chapter,  is  also 
to  be  included  among  the  official  documents   required  by  the 


TsusVBT  DtyABmrr, 

V.  a.  Pcrsuc  BKiin  SxmnoB, 

Form  iM4. 

14.  a>,(10»-F.  C,  Jss.  1044. 


# 


^ 


^\\^^ 


STATES  0^ 


^^^, 


% 


0. 


'^ 


PORT  SANITARY   STATEMENT, 

U.  S.  PUBLIC  HEALTH  SERVICE. 


Port  o/._JIew-£ott ,  aUrr..»- 


to       Liverpool  England 


^«i»«atl.*i?^i»ft^Jfell..?-M??i?i.-(. .- 

Bound  /iroyjt,— «.,.He»--Xork,U.2._-. _ 

JVumier  of  cases  of  and  deaths  from  the  folloiving -named  diseases  reported  ,during  the 
two  weeks  ending Jun» -Slyl^li. —,  I^i 


Cerebro-spiiuJ  Keniugitis  (epidemic) ,. 

Oiolara,  Asiatic^^^.,.-,...*^. ».^.,- 

Diphtteria  . 

Measles...^ 

Flfigue  ., 

PoEomyelitis  CS^SS:)— 

Scarlet  Fever  __»__„_ 

Smallpox  „_..».„_»,«» 

Typhoid  Fever»„_„j.^  „« 

Typhus  Fflvar  -  ■     ■ , 

Yellow  Fever_. 


Totals  •» 


NXTVDER  OF 


.....a... 

.63,7...- 
.661- 
.._..0- 

.„...  1_ 

1... 

._...ao... 

0.. 

-. .0... 


...J3- 
..AZ.. 
..-J5.. 
„..Q.. 
.„.0.. 

t.. 

.0.. 


It  "T*!" '"»*'""  ud  txter. ' 


„...p.j^^^.j.^.j,0«««^M,»7*"~-- 


K6  t^ABANT.NABLS  CSEAM 


Vessel  last  fumigated  at,^^..^ 
Given  UTider  my  hand  and  seal  this ., 


-.19 


day  of ..y:,^^^.^. 


.-^101 


Form  28. — Port  Sanitary  Statement 


Government  because  it  is  used  not  only  for  purposes  of  vessel 
operation,  freight  handling  and  accounting  but  also  to  satisfy 
legal  requirements  at  time  of  vessel  clearance  and  entry.     On 


128       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

the  back  of  the  official  outward  foreign  manifests  are  oaths  to 
be  executed  by  the  master  of  the  vessel  and  the  custom  house 
broker  acting  as  attorney  for  the  agent.    If  a  foreign  trade  ves- 


TnEjnniT  ciPiaTmirr. 

OWtDms  CM.  NO.  lUl. 

T  D  um 
C.  D.,  on.  l>u 


RCQueeT  ron  iMMeoiATe  oueARANoe 


U.   8.   OUSTOMS   eCRVlOE 
COM-ECTIOft  DlSTRIOT  N(x] 


_. ^JU.lZ./?.? ; _....,  191  9 

I, . SgpanL&X_St«Bamhln..£a. 

UacM,  OWBW /x  B«(ml  ol  TsaMLf 

„ of  thoErl.ti-8iJ..n/B..miX..SBflJii.eA; 

{7iH'  motlT*  pow«,  uid  oftiss  gl  rta«L> 

beroby  request  (hat  clearance  be  granted  immediately  to  tlie  aboTe-o&mod  vessel  to  proceed  to  tlie 

port  of ......li.YJ9«)P0.3L „ _,  country  of  ._;._J!PgJ*P(J, 

prior  to  itte  6Ui>g  of  a  complete  manifest  of  all  caiso  on  board  as  required  by  Sec.  4197,  Beviaed 

Statutes,  and  prior  to  tbe  filing  of  thippera',  owners',  or  consignors'  export  deckrationfl  as  required 

by  Sec.  4200,  Revised  Statutes,  on  condition  that  a  complete  manifest,  togetlier  vith  the  ahippeaP 

export  declarations  or  certified  extracts  tliereof,  will  be  filed  on  tlis  next  business  day  afttt  ti» 

departure  of  said  vessel,  and  io  the  event  of  shippais'  export  declarations  not  having  bean  received, 

tbatpro  forma  declarations  on  Customs  Form  Cat.  Ko.  7303  will  be  filed  with  the  eoqjplets  manifest 

and  the  delinquent  shippers'  declarations  will  be  filed  withinfi/tseD  (16)  days  pita  the  dale  of  the 

clearance  of  the  veesel. 

Spaniel  SteaaBhlp  Co. 


{onaj 


Form  29. — Request  for  Immediate  Clearance 

sel  desires  to  clear  before  delivery  of  its  complete  manifest  a 
"request  for  immediate  clearance"  must  be  made  on  Form  29 
and  a  bond  to  produce  it  on  the  next  business  day  after  the  ves- 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT    129 

sel's  departure  must  be  filed  with  the  Port  Collector  (see  Form 
30).    The  vessel  is  likewise  held  accountable  for  delivery  of  the 


eoNO  or  vessel,  to  prooucc  ooMPt-ere  MANireer  ano 

EXPORT    OCCI-ARATION9 


Emow  Alt  MEN  ST  TBESE  PBESENTs,  Tbat .SP.^S^.e?'...3tBaffl8}^P..C.9., _.._• 

sddreas  „JL.i?Q^B.W.ftdV!ftI._... -^ , - 

(UoJiW,  OWD«,  V  ftfaoD 

of  tho  vessel  ...^__VaX..SpBXLlfil— ___._ ■ ._„._ as  phDcipol, 

4a  sureties,  are  telJ  and  linnly  bound  unto  the  Ukitiu}  States  op  Amebica  !□  the  sum  of  five 
hundred  ($500)  doUais,  for  the  payment  of  which  we  bind  ourselves,  our  heiis,  executors,  a4mia- 
ittrators,  successors,  and  assigns,  jointly  and  severally,  firmly  hj  these  presents. 

WrXNTSs  our  hands  and  seals  this 22..,„...„..^.„  doy  of J.uljt.. ,  191     9 

WHtEEA3,  the  aboTft-bounden  principal  has  requested  permission  to  clear  the  within-named 
vessel  to  the  willun-named  destination  prior  to  the  filing  of  a  complete  mamlest  of  all  cargo  on  board, 
as  requued  by  Sec.  4197,  Revised  Statutes,  and  prior  to  filing  of  shippers',  owners',  or  consignors' 
export  declarations  thereof  as  required  by  Sec  4200,  Revised  Slatutos: 

Now,  THtRrroRE,  the  condition  of  this  bond  is  such  that  J  the  above-bounden  obhgors  stall 
deliver  to  the  Collector  of  Customs  at  the  port  ol  exportation  a  complete  outward  mamleat  ot  all  cargo 
00  board  said  vessel,  with  the  particulars  thereof,  as  required  by  Sec.  4 199,  Revised  Statutes,  together 
with  certified  ejctxacte  of  shippers'  declarations  Cor  such  declarations  as  have  been  lodged  with  them) 
not  later  than  the  next  business  day  alter  tho  departure  of  the  said  vessel,  and  m  the  event  of  tho 
ahipperv'  export  declarations  not  having  been  received  shall  file  a  pro  forma  export  declaration  with 
the  completyed  manifest,  and  also  shall  cause  to  be  deUvered  to  the  Collector  of  Cuslonu  wilhm 
fifteen  days  after  the  clearance  of  the  said  vessel  all  delmquent  shippers'  export  declarations  in  the 
prescribed  form,  end  forfailure  to  file  the  completed  vessel's  manifest,  as  aforesaid,. shall  pay  to  the 
Collector  of  Customs  as  liquidated  damages  the  sum  of  five  hundred  ($500)  dollars,  and  for  each  actual 
shippei's  export  declaration  not  filed  within  the  prescribed  tune  shall  pay  to  the  CollecUir  of  (^tomft 
the  Buro  of  fifty  (850)  dollars  as  hquidaled  damages;  the  aggregate  hquidated  damages  unjer  this 
bond  not  to  exceed  five^bundred  ($500)  dollars,  then  this  obligation  to  be  void,  otherwise  it  aholl 
tcouo  i&  full  force  and  effect 

Sp&nlel  8tean8>up  Co.-. 


-ft.O 


Stgned,  Msled,  end  deUvend  la  the  presence  of— 


..«w**^AX^A.. 


Form  30. — Bond  to  Produce  Complete  Manifest  and  Export  Decla- 
rations 

sworn  export  declarations  of  cargo  shippers  with  the  complete 
manifest,  although,  before  the  war,  it  was  not  required  to  deliver 
them  until  fifteen  days  after  the  date  of  clearance. 


130       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

An  informal  report  of  entrance  or  clearance  of  vessels  in 
foreign  trade  is  also  made  to  the  customs  authorities  on  Form 
31.  During  the  war  the  War  Trade  Board  required  the  master 
to  make  affidavit  and  agree  not  to  receive  or  deliver  any  cargo 
in  violation  of  the  Trading  with  the  Enemy  Act  of  October  6, 
1917  (Form  32)  ;  and  it  required  the  master,  owner,  time  char- 
terer or  agent  to  make  application  to  obtain  a  license  for  bunker 
fuel,  port,  sea  and  ship's  stores  and  supplies  (Form  33).  The 
Division  of  Planning  and  Statistics  of  the  Shipping  Board  re- 


Costom  HoBMt  N.  T. 
Uota  Poro  No.  S_17 

REPORT  OP  ENTRANCB  OR  CtEAElANCEr  Ot  VBS3BL3  IH  PORaiOM  TRAM 

Ko jjiOxjea. 191^. 

Veseel-^Brltinli  n/a-gftr-Spaalal .  i  •  ■■ 


Kind  of  Cargo CenQXRl Net  tons_6jA6fiu- 


Master \^..,ZSP.?.3- Crew 7.§. Pass _.X9JL 


Entered  I  Cleared 


From ., i  For IftlilEOo i -^^ 

(Incomplete) 
Vessel  docked  at  |  Uanlfest     {AMi^AM)       B-ees  $_a..6Q — 


^^•"•piERbb    N.  R. 


laden  at  this  port 
{^^_Tons  bunker  coal Gals,  fuel  oil 


RKSIARKS 


Form  31. — Report  of  Entrance  or  Clearance  in  Foreign  Trade 

quired  a  detailed  report  of  the  movement  and  lading  of  vessels 
such  as  is  reproduced  in  Form  34. 

Having  fulfilled  all  the  legal  requirements  mentioned  above, 
the  customs  authorities  authorize  the  clearance  of  the  sea-going 
cargo  vessel  by  issuing  an  official  "Clearance  of  Vessel  to  a 
Foreign  Port"  (see  Form  35). 

Documents  Required  on   Entering  a  Vessel  in   Foreign 

Trade 

When  a  vessel  arrives  within  four  leagues  of  the  coast  or 
within  the  limits  of  a  customs  district  in  which  cargo  is  to  be 
discharged,  the  master  is  required  to  produce  the  original  ship's 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     131 

manifest  for  the  inspection  of  the  customs  official  who  first  boards 
the  vessel  and  to  deliver  to  him  a  copy  of  the  manifest  for  each 
port  at  which  cargo  is  to  be  discharged.     After  examining  the 


WAR  TRADE  BOARD 

BUREAU  OF  TRANSPORTATION 

WASHINGTON,  D.  C. 


BVKKKn  POllM  ]l-7 

Seriut  .\b. .... 


AFFIDAVIT  AND  AGREEMENT  OF  MASTER  OF  VESSEL  GOVERNING 
DISPOSITION   OF  CARGO 

<"ElI>i«»c<  Act"  ol  Jufic  15.  lOl?.  nod  the  " Tradin-  »ilh  ibf  Enemy  An "  of  Orlo*«  «,  m7.) 


I.. 


R^Q^onea. 


OrricE  OF  CoiLECTon  op  Ccstoms, 

Porlo/ JKeit..XOjrX 

july.2D.tli. „,  191 9 

_..,_..._„_ ,  (to  solemn!;  declaie  that  I  aio  tho  maaltit 


(person  in  cKargc)  of  the  ■..JrltlBh..ja/A.. War. .Spaniel and  that  I  have  not  received  on 

board  said  vessel  and  that  1  do  not  have  under  tny  care  or  within  my  control,"and  that  I  will  not  receive  on 
board  said  vessel,  any  cargo  or  part  thereof,  shipped,  or  to  be  delivered,  in  violation  of  any  of  the  provisions 
of  the  Trading  with  the  Enemy  Act,  approved  October  6,  1917. 

I  further  declare  that  no  part  of  the  cargo  on  soid  vessel  is  to  be,  or  will  be,  delivered  to  other  vessels  in 
port  or  is  to  be,  or  will  be,  tranesliipped  on  the  high  seas,  except,  or  otherwise  than,  as  follows: 


I  lo  %(1wm  th«  CvllreTj  o*  TruuaUpnuot  It 


<  II  lb«  carto OT  oor  pwl  (1 


r  VQ«sQ]3  In  pen  or  tmknhlpped  o 


«  lull  ptftlCUliUt  M  1IM11<»I«(L 


And  1  do  hereby  agree,  in  consideration  of  the  clearance  this  day  granted  me  for  said  vessel,  that  1 
will,  upon  reaching  each  port  of  destination  of  the  cargo  carried  by  the  vessel,  (a)  deliver  to  the  American 
Consular  Officer  of  the  District  in  which  the  same  is  unladen  a  true  ond  complete  copy  of  the  manifest  of  that 
part  of  the  cargo  to  be  dischorged  at  that  port,  a  copy  of  the  Shipper's  Export  Declaration  (T.  D.  Customs 
Cat.  7525),  and  also  a  copy^of  this  Affidavit  and  Agreement  of  Master  Governing  Disposition  of  Cargo  (Bunker 
Form  B-7);  and  (h)  deposit  with  said  American  Consular  Officer  the  master's  copy  of  Bimker  and  Storcft 
cicense  (Bunker  Form  B-l-c).    The  documents,  B-7  and  B-l-c,  wjl  be  returned  to  the  master  upon  clearance. 

I  also  agree  t,hat  all  bunker  fuel,  port,  sea,  and  ship's  stores  and  supphcs  on  board  said  vessel  are  for  tho 
•ole  use  of  the  vessel  and  that  no  portion  of  the  bunker  fuel  or  stores  will  be  transferred  to  any  other  vessel 
or  landed  at  any  foreign  port. 

1  further  agree  that  the  American  Consular  Officer  at  each  port  at  which  said  vessel  dischorges  cargo 
OSay  take  any  reasonable  and  proper  steps  to  satisfy  himself  that  all  promises  and  agreements  made  by  tho 
owners,  agents,  and  officers  of  said  vessel  to  the  United  Ststes  Government  have  been  fulfilled;  I  also  agroo 
to  keep  the  said  American  Consular  Officer  informed  concerning  tho  loading  and  discharging  ol  any  cargo, 
bunker  fuel,  and  ship's  stores  and  supplies  on  or  from  said  vessel. 


Uutflt  (PcrvoD  In  Oiarco). 

Snbsnibed  and  sworn  lo  before  roe  this 22 doy  of  ...„ ^jMiti. _ lo.!?. 


:u)ccti«  or  cuiuiw. 


Form  32, — Affida'vit  and  Agreement  Governing  Disposition  of  Cargo 


original  and  comparing  it  with  the  copies,  such  official  certifies 
on  the  original  as  to  its  production  and  on  the  copies  as  to  their 
agreement  with  the  original,  and  transmits  a  copy  to  each  col- 


132       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Form  33. — application  and  Licknse  for  Btjnkbr  Fttel,  Stores  and  Supplikb 

UNITED  STATES  OF  AMERICA 

WAR  TRADE  BOARD  BUNKER    FORM    B    1-0 

bUREAU  OF  TRANsroKTATioN  SupcrscdiDg  UunktT  l''orui8  B  1-a  and  B  1-b 

WASHINGTON,    D.    C. 

Serial  No 

COMBINED  APPLICATION  AND  LICENSE  FOR  BUNKER  FUEL,  PORT,  SEA  AND  SHIP'S 
STORES   AND   SUPPLIES. 

This  form.  In  qimflnipllcate.  (luly  executed  by  the  owners  or  time  charterers  of  the  vessel,  or  by 
his  or  their  duly  niithorized  reprcsi-nl alive,  should  be  presented  to  the  AKent  of  the  Bureau  of  Trans- 
portation, War  Trade  I'.oard  (or.  1(  there  Is  no  apent,  to  the  ("oUertor  of  (Customs),  at  the  first  port 
from  which  vc.wi'l  Is  to  clear.  If  approved  and  eo\interslgned  by  said  Apent  or  CoMector  of  Customs 
It  will  constitute  a  "[TImel  License."  |The  license  nuist  bo  visaed  on  hack  hereof  at  all  subscQuent 
ports  of  the  United  Stntes  and  Its  possessions  or  outward  voyage  at  which  the  vessel  calls  alter  de- 
parture from  the  first-named  port.] 

New  York,  Date  Jul]/  SO. 

(Port  at'whlch  Ucensells  applied  for.) 
Vessel's  name     War  Spaniel.     Flag     lirituh.     When  built     1900.     Tonnage,  gross  9879;  net  6584' 

Total  1).  W.  carrying  cat)aclty  (cargo,  bunkers,  and  stores,  summer  freeboard) 

Type  of  vessel     Sham  l^assenpcr.     Number  of  Offlcer.s     S/,.     Crew     64. 
(State  whether  sail,  steam,  or  motor  vessel,  freight  or  passenger.) 

Average  dally  consumption  of  coal  (or  oil)  at  sea In  port 

Average  speed  H  knots  per  hour,  when  loaded  to  full  draft. 
Owner's  name,   nationality,   and  address   TV'or  Spaniel  Co. 

Charterer's  name,  n.atlonallty,  and  address 

Date  of  charter  party If  time  charter,  date  of  expiration 

If  on  time  charter,  trading  limits 

(State  ports  of  call  on  voyage  just  completed,  also  specify  nature  of  cargo.Clf  any,  on  such  return  voyage.] 
Trading  world  wide  except  to  Germany  and  Soviet  Hussia,  unless  permit  therefor,  tt  issued  by  U.  S. 

War  Trade  Hoard  or  by  Interallied  Trade  Committee  at  [lastlport  outside  of  United  States  from  which 

vessel  cleared  for  United  States) 

[.State  cargo  and   complete  voyage  for   which   this   application   for  bunkers  and  stores  Is  made] 

Copenhagen,  The  Hague.  Christiania  or  Stoetholm  or  by  the  Allied  Bloctade  Committee  at  London. 
[State  appro.^lmato  date  of  arrival  back  at  United  States  port) 

Application  for  License  Is  hereby  made  for  such  Bunker  Fuel,  Port,  Sea  and  Ship's  Stores  and 
Supplies  as  may  be  desired  by  the  above-mentioned  vessel  at  this  or  any  subsequent  port  of  call  In 
the  United  States,  or  Its  poasesslons.  to  which  vessel  may  proceed  [on  the  present  voyage)  during 
the  life  of  license,  and  Is  subject  to  the  conditions  named  on  the  back  hereof,  which  have  been  read 
by  the  undersigned  and  are  hereby  subscribed  to 

(Signature  of  applicant) 

(State  whether  owner,  time  charterer,  agent,  or  master.  If 
other  than  owner  or  time  charterer,  applicant  must  have  proper 
authority  to  act  In  his  stead.) 

License  is  Hereby  Granted  valid  until  revoked  for  Bunker  Fuel,  Port,  Sea  and  Ship's  Stores 
and  Supplies  as  applied  for  above,  [provided  any  change  In  voyage  outlined,  la  noted  on  back  hereof 
and  counter.slgned  by  the  Agent  of  the  Bureau  of  Transportation,  War  Trade  Board,  or  Collector  ol 
Customs, _aa  the  case  may  be,  at  the  port  where  such  change  Is  desired  to  be  made.) 

WART  TRADE    BOARD. 

Vance  C.  McCormick,  Chairman, 
BUREAU    OF    TRANSPORTATION,         1 
C.  Earl  Brown,  Director. 

(SEAL  OF  AGENT  OR  COLLECTOn.] 

By 

Aeent  or  Collector  of  Customs. 
THIS   LICENSE   IS   REVOCABLE. 

The  four  copies  of  this  form  are  to  be  distributed  as  follows: 

Onejcopy  Is  to  be  mailed  by  Agent  or  (Collector  to  the  Bureau  of  Transportation,  War  Trade 
Board,  Washington,  on  the  same  day  received. 

One  copy»  Is  to  be  retained  by  the  Issuing  Agent  or  Collector. 

One  copy,  when  approved  and  counterslgucd  by  the  Agent  or  Collector.  Is  to  be  handed  to  the 
master,  and  must  be  retained  by  him  and  presented  to  the  Agent  or  Collector  of  Customs 
for  v1p6  at  all  ports  of  call  In  the  United  States  and  Its  po.'isesslons  on  outward  voyage,  and 
also  shown  to  American  Consuls  at  all  foreign  ports  of  call  en  route. 

One  copy,  when  approved  and  countersigned  by  Agent  or  Collector,  Is  to  be  forwarded  by  him  to 
the  Bureau  of  Transportation,  War  Trade  Board.  Washington,  accompanied  by  any  other 
forms  issued  In  connection  therewith,  as  soon  as  possible. 
WTB  315 

VISAS   OF   AGENTS   OF   THE   BUREAU   OF   TRANSPORTATION   OR   COLLECTORS   OF 

CUSTOMS  AT  SUBSEQUENT  PORTS  OF  CALL  IN  THE  UNITED  STATES  AND 

POSSESSIONS,    ON   OUTWARDv  VOYAGE. 

Date Second  Port  of  Call 

-,„,,„„.  J  Not  changed. 
voyage  J  changed  as  follows: 

WAR   TRADE   BOARD., 

Vance  C.  McCoiimick,  Chairman. 

BUREAU   OF  TRANSPORTATION, 

t  •  .  C.  Earl  Brown,  Director. 

(SEAL  OF   AGENT  OB   COLLECTOR.) 

By 

Agent  or  Collector  oS  Customs. 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     133 

FOEM  33. — Application  and  License  fob  Bunker  Fuel,  Stores  and  Supplies  (.Continued) 

CONDITIONS. 

It  Is  agreed  and  understood  that  thlslicense  Is  Issued  subject  to  the  following  conditions: 

(a)     That  the  voyage  will  be  carried  out  as  stated. 

(6)  That  the  bunker  luel,  port,  sea  and  ship's  stores  and  supplies  herein  applied  for  are  for 
the  sole  use  of  the  vessel  named  in  this  application,  and  that  no  portion  of  the  bunker 
fuel  or  stores  will  be  landed  in  any  foreign  port  or  transferred  to  any  other  vessel,  unless 
In  accordance  with  special  permission  received  from  the  Bureau  of  Transportation,  War 
Trade  Board,  direct,  or  tiirough  the  local  American  Consul.  Consuls,  however,  are  not 
at  liberty  to  give  such  approval  unless  they  have  received  authority  therefor  from  the 
War  Trade  Board,  Bureau  of  Transportation,  Washington. 

(c)  That  two  copies  of  the  Master's  Report  on  Voyage  (Bunker  Form  B-3)  shall  be  filled  out 
by  the  Master,  and  shall  be  presented  by  him  to  the  Agents  of  the  Bureau  of  Trans- 
portation or  Collectors  of  Customs  at  subsequent  ports  of  call  In  the  United  States  and 
possessions,  and  to  the  American  Consular  OfBcer,  or  if  there  Is  none,  to  the  local  Customs 
Officer,  for  vise  at  each  and  every  forelgnjport  of  call  on  the  voyage,  and  upon  the  Master's 
return  to  the  United  States  shall  be  delivered  at  the  first  port  of  entry  to  the  Agent  of 
the  War  Trade  Board,  Bureau  of  Transportation,  or,  If  there  Is  no  Agent  at  the  port,  to 
the  Collector  of  Customs.  It  the  vessel  is  not  to  return  to  the  United  States,  the  two 
copies  of  the  Master'slReport  shall  be  delivered  by  the  Master  at  the  end  of  tlie  outward 
voyage  to  the  American  Consul  or  to  the  Collectorjof .Customs  at, the  port  herein  designated 
as  the  end  of  the  voyage  for  wlilch  this  license  is  issued. 

{d)  That  the  Master  of  the  vessel,  upon  reaching  each  port  of  destination  of  the  cargo  carried 
by  thejvessel,  (a)  will  deliver  to  the  American  Consular  Otflcer  of  the  district  In  which 
the  same  is  unladen,  a  true  and  complete  copy  of  the  manifest  of  that  part  of  the  cargo 
to  be  discharged  at  that  port,  a  copy  of  the  Shipper's  Export  Declaration  (T.  D.  Customs 
Cat.  7526);  and  also  a  copy  of  the  Affidavit  and  Agreement  of  Master  iGovernlng 
Disposition  of  Cargo,  Bunker  Fuel  and  Ship's  Stores  (Bunker  Form  B-7):  and  (6)  will 
deposit  with  said  American  Consular  Officer  the  Master's  copy  of  Bunker  and  Stores 
license.  Bunker  Form  B  1-c.  The  documents  B-7,  and  B  1-c  will  be  returned  to  the 
Master  upon  clearance. 

(e)  That  the  cargo  has  been,  or  will  be,  loaded  In  conformity  with  any  Rulings  of  the  War 
Trade  Board  respecting  Ocean  Shipping  Preference. 

CO  The  acceptance  by  the  vessel  of  this  License  constitutes  a  guarantee  by  the  vessel  (her 
owners,  agents,  and  master)  that  all  cargo  for  discharge  at  a  foreign  port  will  be  delivered — 

(1)  Only  to  the  actual  consignee  named  in  the  manifest  and  agreed  to  when  export 

license  was  granted:  or, 

(2)  If  for  any  reason,  including  refusal  to  accept,  delivery  can  not  be  made  to 

one  or  more  of  the  actual  consignees  named  in  the  manifest  of  the  com- 
modities therein  described,  such  portion  of  the  cargo  so  consigned  will  not 
be  delivered,  transferred,  sold,  or  otherwise  disposed  of  to  any  person,  firm, 
corporation,  or  association,  without  first  obtaining  the  written  approval  lOt 
the  War  Trade  Board  or  the  American  Consular  Ofl;ter  having  Jurisdiction. 

Note. — In  case  any  material  inaccuracies  are  found  In  the  body  of  this  application,  bunker  fuel 
and  stores  may  be  refused  to  the  applicant  In  future. 

lection  district  to  which  cargo  is  consigned.  Immediately  upon 
landing  and  before  entering  at  the  custom  house  the  vessel's 
master  is  required  to  mail  to  the  Auditor  of  the  Treasury  De- 
partment a  copy  of  his  manifest;  and  to  make  oath  that  he  has 
done  so  and  that  the  copy  mailed  is  a  true  copy.  Should  the 
manifest  be  correct  thereafter  he  must  likewise  mail  a  copy  of 
the  corrected  manifest  and  make  affidavit  to  such  maihng. 

Upon  entering,  a  final  attested  copy  of  the  manifest  must  also 
be  delivered  to  the  collector  of  the  port  accompanied  by  an  entry 
report  and  an  oath  as  to  the  correctness  of  the  manifest  and 
report.  The  master's  oath  on  entering  an  American  vessel  from 
a  foreign  port  is  reproduced  in  Form  Z6 ;  and  the  oath  on  enter- 
ing a  foreign  vessel  from  a  foreign  port  in  Form  37.  Both  of 
these  forms  are  usually  printed  on  the  back  of  the  official  inward 
foreign  manifest.  If  the  vessel  has  not  been  boarded  by  a  cus- 
toms official  the  master  is  required  within  24  hours  after  arrival 
to  report  the  arrival  to  the  collector  on  a  report  of  entrance  or 
clearance  of  vessels  in  foreign  trade  such  as  is  reproduced  in 
Form  31  in  connection  with  clearance  documents.     The  vessel 


134       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


V.  i  UIIPTINC  BOaIID 

DIVISION    OF    PUNNmO 

AND  STATISTICS. 

Oct.  IS.  1>1> 


UNITED  STATES  CUSTOMS  SERVICE 


DaU  «I  CUaj Anc*  . 


REPORT   OF  MOVEMENT  AND  LADING  OF  P«^ua«r« 

VESSELS  CLEARING  FOREIGN^ 


This  report  is  to  be  filied  o-t  la  duplicate  ior  every  vessel  ol  100  net  tou  or  over  upon  cleanog.  tod  delivered 
ta  Customs  Collector  who  will  mail  the  original  to  the  U  S  Shipping  Board  and  file  the  duplicate 


Name  ol  Vessel _^ 

Port  of  final  destination.. 
Port  of  Call  or  Route. — , 


..Rig.. 


<(Sm  Mgt*  u  Pcm  ol  r*i«> 


^»B«Ud  Dftt  nl  Anml 


„.„.._„ -^      Time  spent  in  Port  of  Clearance.. 


CiXHS  tonnage. 

Net  tonnage, ., ^, 

Total  deadweight _..j. -, 

(ljacvi.TiBi  C«acOL  P*uiw<m  Bintna 
C«u.  $To«n,  *trD  w^rva  ON  Vsstn- 
11  TiTi   Piam  DoiKDl 

Bunkers  leaving ..«. — ....  (oni 

Water  (boiler) ,. tons 

Stores  (inci  fresh  water) tons 


XTnloading «,.,.«* 

Loading ...  - - 

.'Coaling „„.. 

Repairs-. .„,_ 

Idle -_, 

Availing  Berth 

Awaiting  Cargo — 


•Time  in  days  for  each  activity  in  Port  of  Clearance. 

._..A_»     .  Awaiting  Convoy. , 

_..-.._^       Delayed  by  Labor  Shortage——. 

——a       Awaiting  Orders.. .__>___^ 

t       Awaiting  PSarti»T  ,     , 


Awaiting  License 

Awaiting  Cr^v      ,  , 


.        Others  (Specify).. 


L 


Deadweight  (or  Cargo. 

Caifo  capacity  in  cubic  (eet 


Total  cargo  on  boards... .^.^ 

'Total  cargo  on  board .,..., 


long  toot 


J. -M.cubic  (ee« 


DESCRIPTION  OP  CARGO 
PnnapATcormnoditics  lire  to  be  listed     If  in  ballast  gi^-t  lead 

CoKKOOin 

tone  TOKl 

Ci'wc  Fbit 

PoiT  or  Lading 

PoiJ   Of 
DUTIFAnOM 

Davs  Dvi 
AT  Pcai  or 

- 

. 

Operating  Company  or  Owner„._____ _.._„ 

Reported  by ^ 


{A«Mi  «  RMpouftila  Oftccr) 


Address 

Address__ 


Note  ? — In  specifying  "Rig"  insert  in  the  space  provided  the  appropriate  term  given  below.* 
i.    Steamer,  Passenger  and  Fmghl  4.    Steamer  Colher  '  8.    Tugi  and  Bai{ei 

i.    Steamer,  Freight  S.    Steamer.  Refrigeratot  9,.    Motor' 

i.    Steamer.  Tanket  6.    Auxiliary  Saihng  10.    Tank  Bargea 

7.    Suliog.  including  all  typa  II.    Other  Opacify) 


Form  34. — Report  of  Movement  and  Lading  of  Vessels  Clearing  Foreign 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     135 


H.  H.  Okt.  Ifo.  ■ 


DCPAWTMCHT  OP    COMMCKCl 


BUNKAU  OP  NaVWATion 


CLEARANCE  OF  VESSEL  TO  A  FOREIGN  PORT 


(Sootloo  4201.  Bevtsed  Htstntoa) 


DISTRICT  OF  NEW  YORK 

PORT  OF  MEW  YORK 


S^BB  are  to  cerltfg  all  toTiom  it  floth  concern: 


THAT. 


— lUO  JoneB- 


Master  or  Commander  of  tte..JBritiBh...ei/B..mr  spaniei. 


burden 6.465 Jons,  or  thereabouts,  mounted  with. 

Guns,  navigated  with 7a Men, 

— E.9.reier) hujif  and  bound  for  „.J'iv^]^oo\,_^n^-iejidi__ 


having  on  board'.. 


merchandise:  and  sxores, 

hath  here  entered  and  cleared  his  said  vessel,  according  to  law. 

UIVEN  under  our  hands  and  seals,  at  the  Custm-Housa  of  the  Port  of  New  fork,  this        23  

^"V  of -JtliiX ._.,  one  thousand  nine  hundred  flffrf__NLnoteen 

and  in  the 1.44tl) year  of  the  Independence  of  the  United  States  of  America. 


Deputy  NavGt  Offccr.  o'epyiyCcllxfor. 


\         ,      .^ 


Form  35.— Cuearance  of  Vessel  to  a  Foreign  Port 


136       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


MASTER'S  OATH  ON  eNTERINQ  AMERICAN  VESSEL  FROM  A  FOREIGN  PORT 


Waited  Slates  ©tiBtoms  Bewiis 

COLLECTION  DISTRICT  No.  10 
Poin  OF  New  YofiK 


I,  .-.J.WB.itS.'TO..... ...,  do  solsmnly,  eincerely,  tod  truly  ewea*  ihkt  tbs  R*pon 

and  Manifest  subscrilwd  in  my  name,  and  now  delivered  by  mo  to  tho  Collector  of  th«  Poit  of  New  York* 
contains^  to  tho  best  of  my  knowledge  and  belief,  a  just  and  true  account  of  all  ths  go^iSti^sima,  and  OMi* 

dtandisp,  including  packages  of  every  kind  and  nature  whatsoever,  which  wore  on  board  **» 

at  tho  timo  of  hw  tailing  from  the  port  of ......Wy.Mfio.o.1 «_  EnelEJB4_ ...t.._.......i — , 


or  which  ha\T>  been  laden  or  taken  on  hoard  at  any  time  since,  and  that  lljo  packages  of  tho  said  goods  or© 
S3  particularly  described  aa  in  the  bills  of  lading,  signed  for  the  same  by  mo  or  with  my  knowkdgo;  thai 

I  am  at  present,  sad  have  been  during  the  voyage,  master  of  th«  said  vessel; »..—  ,... __«... — _ 

._.-__ — — «._ — ;  that  no  package  whatsoever,  or  any  goods, 

worts,  or  merchandise  have  been,  umladon,  landed,  taken  out,  or  in  any  manner  whatever  removed  from 

on  board  tI:o  eaid-vessel  since  her  departure  from  the  said  Tori  of 14.X?.rP?.9.^x_?!?£j.'?.1.''. — — 

except  such  OS  aro  now  partic\ilarly  epcciiied  and  declared  in  tho  abstract  or  account  herewith,  and  thai 
the  clearance  and  other  papers  now  delivered  by  me  to  tho  Collector  ore  all  that  I  now  hax'O,  or  have  had, 
that  any  way  relate  to  tie  carjo  of  the  said  vessel.  And  I  do  further  swear  that  tho  several  articles  speci- 
fied in  tiie  snid  Jfanifest  as  sea-stores  for  the  cabin  and  vessel  are  truly  such,  acd  were  ionafdi  put  on  board 
the  said  vessel  for  tho  use  of  the  officers,  crew,  and  passengers  thereof,  and  have  none  of  them  been  brought» 
and  arc  not  intended  by  way  of  morchondiso,  or  for  sale,  or  for  any  other  purpose  than  above  mentioned, 
&nd  aro  int!5ndod  to  remain  on  board  for  the  consumption  of  the  said  officers  and  crew.  And  I  further  swear, 
that  if  I  shall  hereafter  discover  or  know  of  any  other  or  greater  quantity  of  goods,  wares,  and  merchandise, 
of  any  naturo  or  kind  whatsoever,  than  aro  contained  in  the  Report  and  Manifest,  subscrilx^d  and  now 
delivered  by  me,  I  will  immodiately,  and  without  delay,  make  due  report  thereof  to  the  Colloctxjr  of  th& 
Port  of  Now  York.  And  I  do  likewise  swear  that  all  matters  whatsoever,  in  the  said  Report  and  Manifest 
expressed,  aro,  to  the  best  of  ray  knowledge  and  belief,  just  and  tnio. 

I  do  further,  aa  required  by  law,  solemnly  swear  that  I  have,  ta  the  best  of  my  knowledge  and  belief, 
delivered,  or  caused  to  bo  dehvcred,  into  the  Post  Office  at  or  nearest  this  port,  every  letter  and  every  bag, 
parcel,  or  package  of  letters  that  wero  on  board  the  said  vessel' during  her  last  voyage,  and  that  I  have  so 
dcUvered,  or  caused  to  bo  delivered,  all  such  letters,  bags,  parcels,  and  packages  as  were  in  my  possession,  or 
under  my  power  or  control. 

1  further  swear  that  tho  Register  of  the  said  vessel,  herewith  presented,  contains  the  names  of  all  the 

persons  who  are  now  owners  thereSf  except  t _...._...... 


end  that  no  foreign  subject  or  citizen  hath,  to  tho  best  of  my  knowledge  and  belief,  any  share,  by  ih«  w»y  ol 
trust,  confidcnco,  or  otherwise,  jn  tho  said  vessel.' 

1  further  swear  thaltho  said  vessel  sailed  from  the  said  port  of !-i.'ifirje.''?.l....?.')5.l>J!tt. — _ 

cf. .My...-„...., _.^ _,  191 ' 


Pisr  57  K.  R. 


POET  OF  NEW  VORK.' 

Sworn  before  mo  this.JL?.. 


';d»,cf.iJ!^ — .i9x', 

J)eputy  Collector, 


0  b«  ooUUed  i  f  tho  vc*»I  lias  been  bofirded  by  a  cuatoma  ofScflr. 


pQtVkvia  to  III*  fi^u  of  MarvU  3, 18^»  ftnd  Ju 


Form  36. — Oath  on  Entering  American  Vessel  from  Foreign  Port 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     137 

may  depart,   at  the  option  of  the  master,  after  making  such 
report  and  before  the  expiration  of  48  hours. 
Along  with  the  manifest  the  master  is  also  required  to  present 


HEALTH,  ACT  FEB-  "S»  1993.  FILE©' 
ir.T.Cu»*«»  ^^^„^;j-^„R-S  CEBTr.  ACT  FEB.  15.  .893  HLEO      ^.tf„«H„,  _3n.tl^ 

Cnw, '^^ 


OATH  ON  ENTERING  FOREIGN  VESSEL  FROM  FOREIGN  PORT 

United  States  Navigation  service 

DISTBICT  NO.  10,  PORT  O?  NEW  TOBE 


I, „ „ l!jD.J!Dn.OS.._ ,  do  Bolemaly  swear,  that  the  Bepcrt 

A&d  MajiifeBt  exibscribed  in  my  name,  and  now  delivered  by  me  to  the  Collector  at  the  Port  of  New  York, 

■^contain,  to  the  best  of  my  knowledge  and  belief,  a  just  and  true  account  of  all  the  goods,  waroe,  and 

merchandise,  including  packages  of  every  kind  and  nature  whatsoever,  which  were  on  board  the' 

,,  British  e/e  Vaar  Spaniel ,t  the  time  of  her  aaiHng  from  the  Port  off 

- IilJ?.a.9.9ljtJEn6.l!«<l ■ 


,  1,^  -  -  I,. I        -..rr  ■  .  ■  ■      1 1.  ■-  I  or  which  have  beoa  laden 

or  t&kea  on  board  at  any  time  eince,  and  that  the  packages  of  the  said  goods  areas  particularly  doacribr.l 
as  in  the  bills  of  lading,  signed  for  the  same  by  me  or  with  my  knowledges  that  I  am  at  proeeni,and  bavo 
been  during  the  voyaro,  master  of  the  said  vessel;  that  no  package  whateocver,  of  any  goods,  WEwoa, 
or  merchandise  have  ber  n  unladen,  landed,  taken  ont,  or  in  any  manner  whatever  removed  from  on  boaril 
the  said  vessel  since  her  dgpartnre  from  the  said  Port,  except  such  as  are  now  particularly  specified  and 
declared  in  the  abstract  or  account  horowitb,  and  that  the  cJearance  and  other  papers  now  doUvored  by  me 
to  the  Collector  are  all  that  I  now  have,  or  have  had,  that  any  way  relate  to  the  Cargo  of  the  said  vessel. 
And  I  do  further  swear  thai  the  several  articles  spocified  in  the  said  Manifest  as  sea-stores  for  the  cabin  and 
vessel  are  truly  auch,  and  were  hoTux  fide  put  on  board  the  said  vessel  for  the  use  of  the  ofScera,  crew,  and 
passengers  thereof,  and  have  none  of  them  boon  brought,  and  are  not  intended,  by  way  of  morchandiflo,  or 
tor  sale,  or  for  any  other  purpose  itian  above  mentioned,  and  are  intended  fto  romain  on  board  for  the  con- 
eumption  of  the  said  oflicers  and  crew.  And  I  further  swear  that  if  I  shall  hrroafter  discover  or  know  of 
any  other  or  greater  quantity  of  goods,  wares,  and  merchandise,  of  any  nature  or  kind  whatsoever,  than 
are  contained  in  the  Report  "and  Manifest,  subscribed  and  now  delivered  by  mf,  I  will  immediately,  and 
irithout  delay,  make  due  report  thereof  to  the  Collector  of  the  District  of  the  City  of  New  York.  And  I 
*  do  ntewise  rtvear  that  all  matters  whatsoever,  in  the  said  Report  and  ManJiost  expressed,  are,  to  the  beet 
oC  my  knowledge  and  belief,  iust  and  true.  .  .     .       .     . 

^  I  do  further,  as  required  by  law,  solemnly  swear  that  I  have,  to  the  bo&t  of  my  knowledge  afid  belief, 

delivered,  or  caused  to  be  delivered,  into  the  Post  Office  at  or  nearest  this  Port,  every  letter  and  every  bag, 
parcel,  or  package  of  letters  that  were  on  board  the  said  vessel  during  her  last  voyage,  and  that  I  have  eo 
dehrered,  or  caused  to  be  delivered,  all  such  letters,  bags,  parcels,  and  packages  as  were  in  my  possession, 
or  ^nder  my  power  or  control. 

I  further  swear  that  the  said  vessel  sailed  from  the  said  Port  off _____.., 

. MvRJBOoi on  the 1..... day  of ._.  J_uiX___«_____,  101 9 


„.JL „JElfi.C.^5_H..EU--. 

PortofJVew  York. 

SuAirk  to  before  ttk,  this %Z— 

day  of iuijr ,  i«9 


Deputy  Colteetar. 


'Inaert  danominatiOD  and  name  of  veaMl.  ' 

IZmert  the  nacie  of  the  place  from  whence  the  reeeel  lasi  eaOed. 
This  clanse  to  be  omitted  if  the  veeael  has  been  boarded  by  a  cujstoms  officer. 


Form  37. — Oath  on  Entering  Foreign  Vessel  from  Foreign  Port 

a  list  of  sea  stores,  including  only  articles  for  the  use  and  con- 
sumption of  the  ship's  crew,  and  in  case  of  a  passenger  ship,  of 
its  passengers.    Such  sea  stores  as  are  not  needed  for  immediate 


138       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


use  or  consumption  may  be  sealed  by  the  customs  boarding  of- 
ficer. Surplus  sea  stores  need  to  be  entered  for  consumption  as 
imported  merchandise,  except  that  under  certain  conditions  they 
may  be  transferred,  under  supervision  of  customs  officers,  from 
one  vessel  to  another  vessel  of  the  same  ow^'ner. 

If  the  arriving  vessel  carries  passengers  the  master  is  required 
to  produce  the  sworn  lisf  or  manifest  of  passengers  reproduced 
in  Form  38.  This  passenger  manifest  indicates  the  names  of  all 
passengers  taken  on  board  in  any  foreign  country,  their  sex, 
whether  married  or  single,  whether  citizens  of  the  United  States 
or  aliens,  the  number  of  pieces  of  baggage,  the  age  of  children 
eight  years  of  age  or  under,  and  in  case  of  steerage  or  third 
class  passengers  the  location  of  the  compartment  or  space  oc- 


JL,IST  OF^  F»ASSK^rCGERS 


_Jl.Q.Jona*^ 


tlnceiely  and  traly ^fpor 

CvUector  0/  Customs  of  the  Pert  of HM.york,. 

tht  said  vend  <iL__^,>l"'e'"P«"'^^ . . 

taid  lilt  it  truly  designated 

compartment 

States, 


,  Moiter  of  /ft<>..Brl.U*h.V"—*»''  Spaniel^ 

;l  the  foUowins  List  or  Manifest,  subscribed  by  mr, 


-,  tfo  sotemttlft 


ow  delivered  by  me  to  the 
^  is  a  fall  and  perfect  list  of  all  the  passengers  taken  on  toard 

,    ,  . ,  from  which  port  said  vesset  has  now  arrived;  and  that  on 

of  each  pasienger,  aze  (lY  a  child  of.  eight  years  or  under),  sex,  married  or  single,  location  of 

space  occupied  during  the  voyage  [if  the  passenger  be  other  than  a  cabin  pasienger),  whether  a  cititen  of  the  United 

her  of  pieces  of  bjggjge,  and  the  aamt,  age,  and  eaase  of  death  of  each  deceased  passenger,  as  repaired  ty  the  "Passenger 


Act  of  IS82t"  as  amended  by  the  Act  of  February  »,  190S.    So  help  me  CoJ 


i.2lh_<!«X-5LJ>'l^/P;« 


List  or  Manliest  of  all  passengers  taken  un  board  tA/ ArlUfh— V*-,mr  SpanliU.. 

whereof-^—AJi^SMM if  M/nif»^/,f,m  ^.  LivefPflBl  ,  ..-  — 

burden i*l?5    pc^-i-totu. 


Form  38. — List  of   Passengers 

cupied  by  each.  In  case  of  deaths  it  also  specifies  the  date,  age 
and  cause.  The  passenger  hst  is  submitted  for  the  inspection 
of  the  customs  officer  who  first  requests  its  production  and  a 
correct  Hst  is  subsequently  delivered  to  the  customs  collector. 

The  master  or  agent  of  a  vessel  entering  port  must  also  make 
out  the  radio  declaration  shown  in  Form  39;  and  the  Division  of 
Planning  and  Statistics  of  the  Shipping  Board  requires  a  report 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     139 


RADIO   DBCUARATiON 

(To  be  rabmltted  io  duplicate) 

PIER  55  N.  R. 


Department  of  Commerce 

BUREAU   OF   NAVIGATION 
RADIO  SERVICE 


Notice. — "The  radio  eqnlpmant  mnst  be  in  charge  of  t~o  or  more  persons  fkDIed  in  the  ose  of  such 
npparatus,  one  or  the  other  of  whom  shall  bo  on  duty  at  all  times  while  the  ves,sel  is  being  navigated, 
Guch  equipment,  operators,  the  regulation  of  their  v;atchcs,  and  the  transmission  and  receipt  of  messages, 
except  ns  may  be  regulated  by  low  or  International  agreement,  shall  be  under  the  control  of  the  master, 
in  the  case  of  a  vessel  of  the  United  State';  and  every  willlul  failure  on  the  part  of  the  master  toeoiorca 
at  sea  the  provisions  of  this  paragraph  as  to  equipment,  operators,  and  watches  shall  subject  him  to  a 
penalty  of  one  hundred  dollars."— .4  ci  0/  Julu  IS,  1911. 


HEW  YORK 


Poet  op 

Date  ....July...!?. _.,  191  9 

Tliia  13  to  certify  that  the  .£ri  ti  sh 

(NatioiialiCy.) 

S.S WSJT..  Spaniel 


of  the SpanieJ...St  earn  ship  Co. _ ^ 

(Namo  of  company  or  Ime.) 

of  which  I  am  master,  entered  this  port  on  ...  Juiy.. .12. ,  19l9  , 

having  in  crew  ..„7J5. persons  and  licensed  or  certificated  to 

(Number.) 

carry  ..^.j55D. passengers;  that  the  said  "^^^^^{/J/eft/i*' 

equipped  with  radio  apparatus  as  required  by  the  Act  of  June  24, 
1910,  as  amended  July  23,  1912;  that  the  radio  station  is  in  charge 

of 2....  properly  licensed  radio  operators  and  the  apparatus  is 

(Number.) 

m}/:&i!?yt  condition. 


Master  or  Agent. 


This  form  should  be  filed  in  duplicate  with  the  Collector  of  Cus- 
toms at  time  of  entry,  who  will  furnish  one  copy  to  the  radio  inspector 
of  the  district  on  the  date  of  entry  in  order  that  proper  inspection 
may  be  madeof  the  radio  apparatus  prior  to  the  clearance  of  the  vessel. 


*  StrOte  out  i«  or  i4  not  as  the  caso  may  be. 

t  Strike  out  efficient  or  iaeffieient  as  the  ca£e  may  be. 


Form   39. — Radio  Declaration  When    Entering 


140       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

on  the  movement  and  lading  of  vessels  entering  foreign  similaT 
to  that  reproduced  in  Form  34. 

Before  entry  is  made  the  master  of  an  American  vessel  is 


T«BAir*Y  nrr  *BT«t>.T. 


NT    IN    OUPklOATC 


APPUCATION  AND  PERMIT  W^WJe  Bl^JM^DE  CARGO  OF  VESSEL,  CNDER  ACT  OF  FEBRUARY  13, 1911. 

\'^t,*  •    „»>-Tj'NMrm,6'rt»^  CUSTOMS  SERVICE. 

^..t"'   ^v^*^y>'>*^^o«^>5J.J:cTi(«°6isTRjcT  No..iQ.,  Port  orNW-JacIl ^  _J.«ax„ia-,  19.11. 

*'\^  B»l  ■  r  *.Vim^-»^-imiy*«o  (^HfM  u  Is  »e-qyi'od  by  iho prrt-iiioDs o(  tha  Act  of  February  15, 1011,  ftppUcation  k boreby  mad* lor  tl.«  liiing 
*5<l*'^l>fi>Wjji»\/'dye»J')^^iior  lUn officul  l»>ura under  Ihoiajd ict, ol Uis ciito of  i'.a    Britilh   S/S.      W«r  Spaniel 

^V^        •^        6^       •  '  ■  K      . 

_J.uly_12._ 


(Piw,  cod  a  plw  •!.  lUbur,  fU.) 
_.  19l^.,,  immo(Uit«l7  titer  htt  a 


i-oltttho 


If^  h«jV^  kfTtcd  tbAt  all  ctr^o  4u<rhArge<l  nai,.v  this  t(>pIicttloa  ahall  remftiji  bi^d  (he  whui  or  olbor  pbce  of  iirJafting  until  teleM9(!  bj  ■  p«RLit 
thertli^V  r«Du>N-*d  ia  onul^naity  with  thi^  («rnu  ol  tb9  r<>^1u  cc&enl-ordcr  permit,  to  t>«  umied  &ft«r  ihr  «ntry  of  tho  vcmcI  «t  tho  CuncMnLouM,  ud 
thit  Ura  uid  v«M«l  knd  it4  owD«r  thoU  bo  b<^'l  Uable  L^r  all  JutiM  whioh  may  bo  found  to  be  due  tho  Govcmmeot  oo  sccoufit  of  toy  portion  of  th« 
c^reo  loft  or  atolPD  bom  the  whari  alter  it£  ducbirfc-o  Erom  the  vessel  had,  boforu  tho  delivery  of  tlie  genenl -order  panmt.  and,  furthenuoro,  that  tha 
lubiUty  to  the  ovftcn  of  any  porUoD  ol  tho  catj^  aad  reapoosibUity  for  ita  care  ahoU  sot  be  impaired  ocr  affected  by  any  prooeedicct  undv  ttu/  ftppli* 

cktioo.    Sp«cial  appUcatiooia  mode  W  lade  or  uolajoduriog  other  thin  official  bouraon .SUJXday„jnlfrrit-.-.-,  July.  13 ,.„ ,  19-ISL 

Employ**  fequired  ^  .., ,  yjJ-P.gllPJg, 


Iblata  J  kaawa-4i)(p«ct«n,  w^ibAfi, 


I,  umplAf».UUv«nJ 


ff»r  Spanlftl  Coapany 


AmouAt  of  ddpctfit  f    /  , 
Vorifi^l  by , 


Mottff,  Afftntt  «r  Own^ 


Wew  York 


PERMIT.  (No  Fm.) 

To  the  SORVEYOR  OR  APPRAISER. 

Ipplicatioo  approved  and  Uceo^  granted  .Ttiia  permiaaion  will  not  become  availibld,  however,  onUl  aft«r  the  cunifafft  of  taid  veoel  ihaU  b«v* 
boea  deliver od  to  the  boarding  olBcer,  aod  no  pirtof  Buch  cArgoehall  bo  moved  bcm  the  whati  lighter  or  other  place  of  unlading  before  tha  l«aanc«'of  ft 
proper  permit  thersior-  You  will  iLuigD  tho  roqairod  Duinbor  of  Inspectors,  Weigbere,  Samplera  and  other  employees  ood  have  their  aervioe*  notc4 
.telov.    U  DO  action  10  tikea,  notd  bc^ow. 


PrgUxntnary  entry  made 
Station  Wa 


-,^l!>- 


— ,  Doardln^  Officer. 


_         STATEMENT  OF  SERVICES  RENDERED. 

W«,  tho  and«rsi{TMd,  certify  tb."*.  tho  flatetn^a}  of  aervicee  rendered  noted  oppocito  our  reipective  oamee 


DlTX. 

Eun^oTSD. 

-v?," 

Eammik. 

BiajtAtVttt  Of  OincOM. 

">' 

Form  40. — Preliminary  Appucation  to  Lade  or  Unlade  Cargo 

furthermore  required  to  produce  to  the  collector  of  the  port  his 
register  and  the  clearance,  bill  of  health,  copies  of  consular  in- 
voices and  other  documents  issued  to  his  vessel  at  her  last  port 
of  departure.    The  register  is  retained  by  the  collector  until  he 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     141 

grants  a  clearance  to  the  vessel.  Foreign  vessels  are  required  to 
produce  to  the  collector  their  registers  and  their  clearance  and 
other  papers  issued  at  the  last  port  of  departure,  and  then,  with- 


o 


o 


o 


TREAfftTHY  r>tfiiHTVtVr. 


VESSEL   BOND  (Temi). 

^or  lading  or  unlading  at  night,  holidays,  etc.,  to  land  equlpfnenl  for  repair,  «It:.>  to  dIackArc*  en  Hchtort, 
outaido  of  d(>cka,  to  pay  l»gal  charr«*t  penaJtiaa,  etc.,  to  land  c*rro  In  othar  cUatricta  or  foreign  port^  to  produ 
•sport  ftsanifaata  aad  declu-ationa.)  , 

Ekow  all  Mkw  BY  THESE  Phmetttb,  Thai...apj»ni.oA 31tW.9)*l^..C?*JP**}Jf._.»,«*. , 


of ilfl?f..Y.9rI|„.., *. ^ , , «^ „...  ae  principaty 

toj Jo^.^,P?.^ ^ „ of ^...^^..y.9.T^.^^^ ^ -„ 

And Uenry.^.th ] ^ .^^.T.*??. 

AS  miretiea  are  held  and  firmVy  bound  unto  the  UNITED  STATES  OF  AMERICA  id  the  Bum  of 

—.-^ift-y—JIlLOUfiRni-.— .--.-»•..•«.. j««»L..-»-.^..r...r..r..-f.  dollare  for  the  payroenl  <rf  whicb  we  bind  ouree]vee» 

<mr  heJTB,  executors,  administrators,  si>cceasors,  aad  assigna.  Jointly  and  aeveraDy,  firmly  by  tbwe  prescnta. 

Wmnss  oiir  handa  and  seals  this JjB^. _.  day  of i^..7.«.*.. --_     ,  19 19 

WnzBtAB,  certain  Tcssels  of  the ?J>».i?AS?..  9.1®^.?*^?iP.J4j!? «... 

«*  expected  to  enter  at  and  clear  from  tho  port  of ?*.^..T.?.'!^ ^--^ -..„  ...■,. 

<lnjing  the  period  from Jw>y„).9:t,i.?A9 to  ihelastdayof  ...JP«P.e«^.*L.?.^jy.V^„.^:...,  19 

Now,  TE£K£FOB£,  THE  CoVIrtTTON  OT  THIS  ObUOATION  19  eUCB,  thaV— 

(1)  If  the  aaid  principal  shaft  pay  to  the  Collector  of  Customs  of  the  said  port  promptly  on  dbmand  the 
earns  chargeable  under  law  and  reflations  in  conformity  therewrth  for  servicas  performed  for  said  vessels 
by  customs  officers,  and  shall  promptly  pay  any  duea,  charges,  penaltJee  or  other  sums  found  legally  doe  tho 
"UNITED  STATES  from  any  master  or  owner  of  said  vessels  in  relation  thereto; 

(2)  And  if  the  aaid  principal  shall  save  "the  UNITED  STATES  and  the  aaid  collector  harmless  from  all 
losses  and  Uabilitiea  which  may  occur  by  reason  of  the  granting  of  any  permit  or  hcense  to  any  of  said  vessols 
to  discharge  or  take  on  cargo,  equipment,  baggage,  ballast,  fuel,  or  other  articles  at  night,"  oo  Sundays,  or 
hohdaya,  or  lo  land,  place  or  store  the  same  on  hghtcrs  or  on  piers,  landing  places  or  on  spafcea  adjoining 
thereto,  and  if  same  shall  not  be  removed  therefrom  until  proper  permits  have  been  presented; 

(3)  And  if  afl  articles  shown  on  the  manifest  of  any  of  said  vessels,  lo  be  destined  for  other  customs  dis- 
tricts or  ports  or  for  foreign  porta,  are  landed  at  the  destination  stated,  and  proof  thereoFis  f uniished  the  said 
collector  in  the  form  and  within  the  time  required  by  law  and  regulations,  or  any  lawful  ext«nsion  thereof; 

(4)  And  if  complete  manifests  of  all  cargo  destined  for  foreign  ports  or  noncontiguous  territory  of  the 
UKITED  STATES,  and  shippers'  export  declacrations  and  pro  forma  declarations  are  dehv^red  to  the  said 
collector  in  the  form  and  manner  and  within  the  time  prescribed  in  Sections  4197  and  4200  of  the  Revised 
Stptutee  of  the  UNITED  STATES,  Treasury  Decision  No.  35ff69  of  December  14,  1916,  and  other  regulations 
OP  laws  relating  thereto; 

Then  this  obligation  shall  bo  void ;  othjBTWtee  to  remain  in  fuU  force  and  effect. 

Signed,  sealed  and  delivered  in  th©  ,„  »   ■  -.  __..,  ■■■    -,  ^flriT  ) 

presence  of — 

I      ■     III      ;,.i«  ■    ,...  ■■,.■,■,„■»  .,,.,■  ...-.^  [siAL-l 

■    >    .  ■  ■ ,  I      ,  .  tsBAL.) 


(iUKimod  nadar  like  sd  d  Caogno  of  AorbsI  U.  tSM,  ss  uiModal  by  tl 

IiartDCBAtp,  b)  tfbtcb  «T«i)t  Ttrwn  fcai 
<,tEMj'c,ooa3p<ialii(uafl(aif  A.B  A 


Form  41. — Vessel  Bond  (term) 

in  48  hours  after  entry,  to  deposit  them  with  the  consular  officer 
of  their  native  country,  delivering  to  the  collector  a  certificate 
from  such  consular  officer  to  the  effect  that  the  papers  have  been 
deposited  with  him.     The  consular  officer  retains  these  papers 


142       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

until  the  master  obtains  a  clearance  from  the  port  collector.  Re- 
ceipts of  any  fees  or  charges  paid  to  American  consular  officers 
abroad  are  also  delivered  to  the  port  collector,  together  with 


fujutnrr  f>c?Airtvi] 
<MB  CM.  a^  )lll 


PRESENT  IN  DUPUCATE 
GENERU.  PERHn  TO  LADE  OR  UNLADE 

UnHed  SutM  ( 
CollMdon  DiMrict  No.JlQ__Port_ 
To  TBI  Couxctor: 


.July..l2_ 


.191 » 


I,  the  underagned.  thi 


JUjcexsfi-Ql- 


'fflf/ff 


ol  i)i. BrltlBla   b/b  t»JLfiBftQ4ft> 

July  12 


JEIEIU^U^U?.. 


.  Kavinf  complied  with  all 


I*    To  Uad  baffgflye  and  cHecta  of  pftMcngcn  and  crew. 


191*       docked 

reqmremenu.  hereby  make  appKcation 


_Je8_ 


2.    To    land    the     foUowiag    aitide 
nlade  aame,  to.  ■ 


ol     etjutpmenl     for    repair    or  adjuMnent    and    to 
AS  MAY  Bl  MECtSSARY 


9.    To    land    containers    of  Americaa   origin   whoae   content*  were 

T« 1.  y>Y  tt  >iectss«iiy 


4.     To  diacbarge  ballast  which  conn«t«  ^*         ■  ,  ,  ■  , 

and  which  I  declare  to  be  of  no  commercial  value  and  not  brought  ai  merchandtie. 

}.    To  land  the  followiag  articlea  of  equipment  not  to^e  reladeo. 


/      -        .           L     _j     L-i         1   J        J     •         V            DAY  OR  N16HI 
a    To  take  on  board  whJe  unlading  dunng  the 

•  [>«««  BI««U 

COAl,  CARGO,  LUMBER  li  tTC. 


-the  following 


IBaUmv  Ohvv.  \Amitm.  Owl) 


(M•t^*t.  OatwF  m  A$tfti.) 


AAA,...     120  Broadway 


To  the  SorvfTor:  PERMIT  (No  Fee) 

Dedared  fo  before  me  and  application  approved  and  license  granted  provided  there  is  no  risk   to  the  revcDO«; 
lospectors  will  make  their  return  hereon. 

-Tuly   12 /9/.© 


-DtputyCoiltdor. 


INSPECTOR'S   RETURN 

To  &e  CoUector: 

All  articles  enumeratod  above  were  discharged,  laden  or  reladen  on  board  in  accordance  with  the  terms  ol  (tit 
appltcatioo  and  permit  and  proper  return  made  thereon  except,  viz  : 


Smptdm, 


Form   42. — General   Permit  to  Lade  or   Unlade 
written  statements   covering  consular  services   rendered  to  the 
vessel  M^ithout  the  payment  of  fees. 

As  the  cargo  of  a  vessel  entering  from  a  foreign  port  is  dis- 
charged under  supervision  of  the  customs  authorities,  the  agents 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT    143 

or  owners  prior  to  the  vessel's  arrival  make  application  to  un- 
load either  by  day  or  night  or  on  Sundays  and  holidays,  and  for 
the  assignment  of  inspectors,  weighers,  gaugers,  samplers,  etc. 


TRKA3Uny  DtPA 


PILE    IN     DUPL-IOATE. 
APPLICATION  AND  PERMIT  TO  ALLOW  UNPEBMITT£D  CARGO  TO  BEMAIN  UPON  y™aRF. 


United  .gtal^s  ©ustoras  ^extsice, 


ComcnoK  DUT3SOT  No.  ...10...,  Poet  of 

.j^uiy...!?. 


NEW  YORK^ 

/9..1? 


To  TOE  Collector  of  Customs: 

Application  is  hereby  made  to  allow  the  unladen  but  not  permitted  cargo  of  the 

.War.^paalfil _.  of  the „......,..Spaniel_,Ste:ejrshij) _ Lin^;  arrived 

on  ..J.uly  .12 ,  19.1.9..,  to  remain  on  Ihe  wharf  untlL-^.JP-AM.« o'clock  orn. - , 

..J.uly-15....,  lO.Jia 

The  ouTiers  of  said  vessel  hereby  t^ee  to  indemnify  the  Collector  of  Coatoms  for  and  to  save  him  harmless  on 
account  of  any  and  all  losses,  claims,  or  risks  which  may  result  from  the  panting  of  this  apphcation,  and  the 
liability  of  said  owners  under  this  acrrcomc-nt  aliall  coatinuo  until  the  cierchcndibe  is  duly  removed  from  the  v-hnrf 
under  general  order  or  delivery  permit.  The  rights  and  liabilities  of  the  o^^tiers  of  said  vc-ssel  and  of  the  owners 
or  consignees  of  the  cargo,  respectively,  shall  remain  imimpaired  by  tte  granting  of  this  application. 


IUkks. 

N^..„. 

.D.sc=>^o>,„>.M....^.«.. 

.^ 

War  Spaniel  Co. 

Master,  agent  or  owner  ofvtssd. 

p.ol 


PERMIT. 

To  XBE  Inspectoe: 

The  inspector  on  board  the  above-Bamed  vessel  will  allow  the  tmladcn  but  not  pcrruittci  cc'^  to  ramoin 

upon  the  wharf  ujitil6.  J..1I. o'clock  on  ..lHly.-16._ _,  19.1?..,  ^d  ^3  ^oon  aa  prncticabie 

thereafter  he  will  send  cargo  then  remaining  on  the  wharf  and  not  permitted  to  the  proper  General-Order  Store. 


..,  19_ 


DeytUy  CoUectm. 


Received  by  inspector  at  . 


IiuptaoT. 


Form    43. — Appucation    and    Permit    to    Allow    UNPERMrrrED    Cargo 
TO    Remain   Upon   Wharf 

The  permission  granted  in  the  preliminary  permit  or  license 
which  is  issued  by  the  customs  collector  or  his  deputy  does  not 
become  available  until  after  the  cargo  manifest  has  been  delivered 


144       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

to  tlie  boarding  officer.  This  application  to  unload  and  the  pre- 
liminary permit  are  executed  on  Form  40,  which  is  known  as  the 
application  and  permit  to  lade  or  unlade  cargo  of  vessel,  under 
Act  of  Feb.  13,  1911.  Before  such  application  is  made  or  permit 
granted,  the  owners  or  agents  are  required  to  execute  the  vessel 
bond  reproduced  in  Form  41. 

This  is  followed,  after  all  customs  requirements  have  been 


TlET^   55N.  R 


Cnatoro*  (>i.  N*>.  iiW- 
C  D  ,  Ut.  uPli. 
I^TLIj  "General  Order  "  wU)  issue  to  the  loipector  la  chArg«  of  V«!«el-    Tbe  goods  doI  permitted  wtl)  be  tnimedlAtetv  oenl  to 
G«twnM>rder  Warcbooae.  Qnle«9  a  license  baa  b«eQ  granted  by  tbe  Collector  allovriog  them  to  remAio  od  tbe  wbarf  a  epedfled  time, 
odI  to  exceed  iorty-elght  hours  Irom  the  time  of  tboir  disrharge.  at  the  riek  of  the  owaer  of  tbe  vcsmI. 


'"GENERAL  ORDER"  TO  SEND  UNPERMITTED  PACKAGES  FROM  WHARF  TO  PUBLIC  STORE. 


Suited  5tat£S  (JPuBloins  J^cvuicc, 

ao  NEW  YORK 

COLLECTION  DISTRICT  NO..Ay,..,  PORT  OF._ ._ .  •"         

Collector's  OtfUt,^ July.  "XZ IDl  » 

The  Inspector  on  boanl  the  ...Ji:J..t.i.8h..)?/.9...W».r..SPftI}i9.X „.„_„..„....^ 

i 1 -...; . -Master,  from.._„_Li»arpiODl ,.._ ,  will  allow  to  be 

landeJ.  and'wiU  Bead  to  the  Public  Store,  No. .5.13/."j8i."W"eJ9.^...20JWi..S.t» _ 

Street,  all  packages  for  which  no  permit  or  order  shall  have  beeo  received  by  him  contrary  to  this  direction, 
except  perishable  articles,  gnnpowder  and  explosive  substances,  and  neat  cattle  and  hides,  which  he  will 
retain  on  board,  and  send  notice  thereof  to  this  Office. 


ColUcto. 


Xaval  OfHur. 

a^Bulky  packages  of  iron,  6\ex\,  tin,  aod  macbio«ry  uill  be  eeot  to  a  bonde<l  abed 

kf  ibe  usual  vaighing.  gaagiDg,  and  raeasuriDg  will  be  done  before  seodiog  goods  ooder  tbia  order. 


Form  44. — General  Order  to  Send  Unpermitted  Packages  from  Wharf 

TO  Public   Store 

complied  with,  by  the  general  permit  to  lade  or  unlade,  repro- 
duced in  Form  42.  In  this  document  application  is  made  by  the 
master  and  permission  is  granted  to  land  the  baggage  and  effects 
of  passengers,  to  load  and  reload  articles  of  equipment  requiring 
repair  or  adjustment,  to  load  specified  articles  of  equipment  not 
to  be  reloaded;  to  load  containers  of  American  origin  whose 
contents  were  consumed  on  board;  to  discharge  ballast;  to  take 
cargo,  coal,  lumber,  etc.,  on  board  by  day  or  night  while  unload- 
ing; to  retain  on  board  the  cargo  manifested  for  certain  points, 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     145 

and  to  take  any  other  action  for  which  special  permission  is 
needed. 

Should  the  owners  of  the  vessel  desire  to  retain  unpermitted 
cargo  upon  the  wharf  until  a  stated  hour  and  date  instead  of 
sending  it  to  the  proper  General  Order  Store,  they  are  required 
to  make  application  to  allozv  unpermitted  cargo  to  remain  upon 
wJiarf  and  to  indemnify  the  collector  against  any  losses,  claims 
or  risks  resulting  from  the  granting  of  such  application.  The 
vessel  owner,  agent  or  master  may  thereupon  receive  a  permit 
to  retain  cargo  upon  wharf  for  a  specified  time.  This  application 
and  permit  are  executed  on  the  blank  reproduced  in  Form  43. 
Unpermitted  merchandise  not  covered  by  such  special  license  or 
permit  to  remain  on  the  wharf  is  sent  to  the  public  store  named 
in  a  so-called  "General  Order"  issued  to  the  customs  inspectors  on 
board  by  the  port  collector,  excepting  that  perishable  articles, 
gunpowder  and  explosives,  neat  cattle  and  hides,  are  to  be  re- 
tained on  board  the  vessel  (see  Form  44). 

_  ) 


h  }} 


k 


\ 


(TV 


CHAPTER  IX 


SHIPPING  DOCUMENTS  REQUIRED  BY  THE  UNITED  STATES 
GOVERNMENT   (Continued) 

While  steamship  companies  are  concerned  directly  with  the 
ship's  papers  and  the  vessel's  entrance  and  clearance  documents 
referred  to  in  the  preceding  chapter,  they  are  also  concerned  with 
the  many  official  documents  required  of  importers  and  exporters. 

Official  Documents  Required  of  Exporters 

The  bill  of  lading  discussed  in  Chapter  VII  is  a  commercial 
document  governing  the  relations  between  shippers  and  ocean 
carriers,  but  it  is  also  an  official  document  required  by  law,  its 
contents  is  legally  prescribed  in  part,  and  its  production  is  re- 
quired at  time  of  entry  when  merchandise  is  imported.  Several 
documents  are,  however,  specifically  required  from  exporters  by 
the  Government  when  merchandise  is  shipped  abroad,  and  the 
ocean  carrier  needs  to  check  up  the  exporter. 

The  exporter  is  required  to  prepare  a  sworn  export  declara- 
tion or  shipper's  manifest  such  as  is  reproduced  in  Forms  45a  and 
45b.  The  exporter  makes  oath  that  the  merchandise  listed  in 
the  declaration  is  a  complete  account  of  his  entire  shipment,  that 
its  description,  quantity  and  valtie  are  correctly  stated,  that  the 
consignee  named  is  the  actual  consignee,  and  that  none  of  the 
merchandise  is  shipped  or  to  be  delivered  in  violation  of  the 
provisions  of  the  Trading  with  the  Enemy  Act  of  October  6, 
1917.  The  declaration  contains  the  name  and  address  of  the 
shipper,  his  signature  or  that  of  his  authorized  agent,  the  place 
of  original  shipment,  the  port  of  exportation,  the  destination, 
the  name  of  the  steamer  and  carrier,  the  marks  and  numbers 
contained  on  the  package,  the  number  and  kind  of  containers, 
description  and  quantity  of  the  merchandise,  and  its  market  value 
at  time  and  place  of  shipment  stated  separately  for  wares  of 
domestic  origin,  including  goods  altered  or  remanufactured  in 

146 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT    147 

the  United  States,  and  foreign  products  in  the  same  condition  as 
when  they  were  imported. 

Each  export  declaration  is  given  an  official  number.    In  case 


ratail  1^  acM  tr  *.  L  S>>0,  Ub,  U  Sua  Sb  tl.  «.  rm  lin 

(For  Unilad  Sutna  Ciutoas  tat  Wer  Trad*  Bonn)  ) 

SKIPPER'S  EXPORT  DECLARATION 

af  UEdcsmisE  sripped  to  mim  mnmis  or  kcn-contisuous  lERKironiEs  of  m  u.  t 

C^CIurMC*  will  oot  be  graated  until  ilitpper'*  decUrHioo  ku  bteo  tied  wilh  lh«  CoUfcWr  o( 
U.  S  Go«r«awtit  cjfKm  »iiii»tic»  •-«  tooipiled  frem  lUa  decUfUlt-a  ••<^  iL<llMt,b*  a 

Goo<l.dupp«lbr    ^  gASTON,WiLLIAWStWl6Q0t{!:W 


TUt  tpcn  let  SM  el  CuKm^ 

»o.-4.B97fin     .  . 


(CwU)  Ho.  DiJt.) 


Addreast  L...S9JB.tJ»i3a7. s.e»  Tork-.CLty. 

(H>Kbci.>  (3imL)  (CUT.)  (SUiZ) 


_ii,«w_.ycLtk.. 


vu. 


(Curicr  Iroffi  taurior  [ 


Fdr  slupmeot  on  tHeJllcta.  tine atoG^flt  .X-. 

<HuM  c4  urriec     U  imhI,  firt  ujof,  sistlt*  i^vcf.  tod  lUf  U  lc&9«a> 


FromUew-XorJ.city To  umzoAte  forei^ de»tinatioa«-Buaiios,Alr.Q.O—JLrgen.tliie.„ ......,_ 

<tl.  S.  OmIoibi  pofi  ol  czpotlfttJeo.)  (City.)  (CocbUtJ 


71btS'.«'ot>uicU« 
cw. 

COMMODirV. 

BoudCodc 
Mnbu 

Quuitily 
i'o1.iM2.J4mb.J 

VabM  at  liaa  and  placa  al  ihipsoMtb 

llvbulraiatm 

ration  ctolh.  ptiQCng  tkr«>»...  applet,  elc     C*lltr.i 
*K.,  *ill  aoi  b.  .kcept.d. 

V.  S  Pfadut... 

ramaBBlacliir.4  io 
Iha  Unilad  Sutt*. 

Fouls*  PradacO} 

3q?;nnPH 

zzzzKXsa 

..„,...4fl 

£60._„ 

. 380 

Oallvi 

.. 30.0..... 

..a. — £0.... 
IDQ.... 

QMy 

_.SiNi9D.{i3  Aire 

a 

...y._IL.C 

..S„10p/57S.. 

..7..JI..C 

-.a..iP»3/j.4,_ 

_l..tal9.. 
..3...c/a.... 

...OlQ.I 

■  li^g 

jata - 



...7...R..C. 

V  1/3 

■frumnn   . 





WiiybiU  or  Kiinircst 

Ko,                           .      .Wl 

I  Cc/tily  Ihit  above-<lcscribvJ  jMiii  wcrt  ^  itptd  as  eUUd  herein  except  u  olbtrwue  nole^ 

],  Ibe  aDdertisnedL  folemaljr  and  Iculr  declare  tbai  th«  abore  Btatemeot  Is 
the  party  named;  on  board  the  vcscel.  c»r,  or  vcbicla;  u>d  to  tbe  place  ot  cour 
article  is  truly  tUtod  and  that  th«  t»]hm  ihfot  an  tiie  actual  costs  o  true  it 
I  further  dt^lare  that  oone  of  the  mcj-chanditc  dctcribed  above  b  to  be  laden  < 
•hipped  on  the  high  teas  cxc«p<  aa  ftUr  ctat»4  »Wv«;  I  fvrUer  declare  tbat  at 
UoD  of  any  of  tb«  provi&ioDS  of  tbe  'Tradrof  vitJi  Hi*  Eocay*  act« 

approved  October  6.  1917;  that    YJBEJg    JIOPiEM   ^   QQm 

is  actual  consi^ee  of  said  merckacdii«,  ud  t^at  U  aklimest  h  mtde  to  a  bank  or  other  broker,  factor,  or  agent,  that- 


a  complete,  just  aod  true  account  of  alt  mercbxadtte  shipped  bv 
itry  named  above;  and  that  the  descriptioQ  and  Quaotity  of  eaca 
larlcct  values  at  the  time  and  place  of  sbipmcots  tor  exportaliooj 
on  any  other  vessel  Id  Dort  tbaa  that  oajncd  above  or  trans* 
3ae  of  Mid  merchasdUe  i#  slu;>pod  o^  to  be  delivcfcd  to  vioU- 


?^^_^»  ahQTm 


-k  Is  the  acttnl  eooslgirae  oa 


(Dtpvt7  ooOector.  s«tuy  public,  etc.) 


<Sl8„..ur.)  RASTQM,  Wll  I  lAMS  I  WiGMOffE.  tftC. 

Authptiied  agent 

"  '  '        (£&abar  01  UvTawataiT.  a^aat.  ata.1 

(Addftx)  ■    ^  Or»aJ»uy — H  V  citv  ' 


Form  45A.— Shipper's  Export  Declaration 

of  shipments  to  foreign  countries  it  must  at  present  be  prepared 
in  quadruplicate,  except  for  shipments  in  transit  through  the 
United  States  from  one  country  to  another ;  and  in  case  of  ship- 
ments to  non-contiguous  territory  it  is  prepared  in  duplicatCa 


148       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

INSTRUCTIONS. 

Read  carefully  to  avoid  dday  at  ahipping  point. 

This  form  must  be  prepared  In  qimdrupllcato  for  all  merph.indlsp  shipped  to  a  forelfm  destination, 
except  shipments  In  transit  throiuh  the  I'nlted  States  from  one  furelk'n  eountry  to  another,  and  In 
duplleato  for  merchandise  shipped  between  the  United  States  and  Its  noncnntlciious  territory.  When 
merchandise  Is  shipped  forelKn,  four  coi)les  of  this  form  must  be  presented  to  the  collector  of  customs 
for  each  conslenment.  The  collector  will  retain  the  orltjinal  and  one  copy  and  deliver  the  other  two 
copies  to  the  shipper.  The  shipper  will  present  one  copy  to  the  steamship  company  and  deliver 
the  other  copy  with  the  goods  to  the  Inspector  of  customs  on  the  dock,  without  which  no  Koods'will 
be  received.  The  copy  delivered  to  the  steamship  company  must  accompany  the  ftoods  on  their 
vovage  and  be  delivered  by  the  master  to  the  American  Consular  olflcer  with  the  manifest  at  the 
port  of  dtscharRe.  The  copy  delivered  to  the  Inspector  of  customs  upon  which  he  will  make  his 
notifications  of  short  shipment,  etc..  must  be  delivered  to  the  vessel  to  bo  attached  to  the  manifest 
delivered  to  the  collector  upon  clearance. 

Export  license  number  and  date  of  expiration  must  appear  Immediately  above  goods  'shipped 
thereunder . 

The  War  Trade  Board  code  number  of  the  article  ftlven  on  the  export  license  must  be  Inserted  after 
each  commodity  In  the  column  following  the  description  on  the  face  of  this  form 

If  goods  are  to  be  delivered  to  other  vessels  In  port  or  transshipped  on  the  hlRh  seas,  the  articles, 
quantities,  and  values,  and  name  and  address  of  persons,  corporation,  vessel.  Government,  etc.,  to 
whom  transferred  or  delivered,  must  be  stated  on  this  form. 

1.  Shipments  from  Interior  points  for  exportation. — If  shipped  on  a  through  bill  of  lading,  the 
shipper  must  prepare  the  original  export  declaration  In  qu.adrupllcate  for  foreign  shipments  and  In 
duplicate  for  shipments  between  the  Unlte<l  States  and  Its  noncontiguous  territories  and  deliver 
forms  to  the  carrier  to  accompany  the  shlpi'lng  papers  to  the  port  of  exportation.  If  shipped  on  a 
local  bill  of  lading,  the  declarations  may  be  attached  thereto  or  mailed  separately  to  the  consignee 
at  the  seaboard. 

'(a)  If  the  shipper  prefers,  he  may  place  the  original  declaration,  but  not  the  carrier's  extract.  In 
a  sealed  envelope  addressed  to  the  Collector  of  Customs  with  his  name  Indorsed  thereon  and  the 
fact  of  sealing  noted  on  the  declaration  and  deliver  It  with  the  extract  to  the  carrier.  If  goods  are 
consigned  to  an  agent  at  the  seaboard  for  transshipment  and  exportation  the  shipper  may  mall  the 
declaration  and  extract  properly  prepared  direct  to  the  agent. 

(b)  TJpon  arrival  of  the  goods  at  the  port  of  exportation,  the  carrier  mtist  Immediately  deliver 
the  original  declarations,  sealed  and  unsealed,  and  the  carrier's  extracts  to  the  Collector  of  Customs 
who  will  retain  the  original  and  certify  the  extract  and  return  It  to  the  carrier,  vessel,  or  party  named 
to  attend  to  exportation. 

2.  Exporting  vessel  or  carrier. — Care  should  be  exercised  In  receiving  goods  destined  for  foreign 
countries  or  noncontiguous  territories  not  accompanied  by  certified  extracts  or  original  declarations, 
as  clearance  will  not  be  granted  until  the  export  declarations  have  been  filed  with  the  Collector.  The 
copy  must  be  attached  to  the  vessel's  manifest  or  car  manifest  or  copy  of  waybill  when  presented  lor 
clearance. 

3.  Before  a  clearance  shall  be  granted  for  any  vessel  bound  to  a  foreign  port,  the  owners,  shippers, 
or  consignors  of  the  cargo  of  such  vessel  shall  deliver  to  the  Collector  manifests  (or  declarations)  of 
the  cargo  or  the  parts  thereof  shipped  by  them  respectively,  and  shall  verify  the  same  by  oath.  Such 
manifest  (or  declarations)  shall  specify  the  kinds,  quantities,  and  values  of  the  articles  and  the^oreign 
port  or  country  of  destination.     (See  sec.  4200,  Rev.  Stats..  U.  S.) 

If  any  vessel  bound  to  a  foreign  port  departs  on  her  voyage  without  delivering  manlfesf^nd  obtaining 
clearance,  the  master  or  other  person  in  charge  shall  be  liable  to  a  penalty  of  J500  for  every  .such 
offense.     (See  sec.  4197.  Rev.  Stats..  U.  S.) 

Similar  provisions  apply  to  exportations  by  rail,  vehicle,  or  ferry.     (See  sec.  1.  act  March  3,  1893.) 

4.  The  shipper  must  prepare  this  export  declaration  and  sign  the  four  copies  and  the  oath  be 
taken  on  the  original  before  a  customs  officer,  notary  or  other  authorlaed  officer.  The  declaration 
must  be  signed  by  the  shipper,  but  the  oath  may  be  omitted  on  shipments  to  Canada  or  Mexico  by 
car.  vehicle,  or  ferrj'.  If  the  declaration  Is  executed  by  an  agent  for  the  shipper  the  authority  must 
be  In  writing  on  this  declaration  or  other  document  filed  with  the  Collector.  The  values  and  names 
of  shippers  may  be  omitted  from  the  copies  to  be  delivered  to  transportation  company,  but  must 
always  appear  on  the  original  and  the  copy  for  use  of  War  Trade  Board.  The  original  Is  for  the  use 
of  customs  officers  and  will  be  treated  as  confidential  and  information  not  disclo-seii  without  wTitten 
authority  of  the  shipper  or  his  agent.  Export  statistics  are  compiled  from  these  declarations  and)Bll 
data  required  on  the  prescribed  form  must  be  furnished. 

5.  Domestic  articles  exported.— The  value  of  all  articles  grown,  produced,  or  manufactured  In 
whole  or  part  in  the  United  .States  must  be  stated  in  the  column  of  "U.  S.  Products.' 

e.  Foreign  articles  exported. — The  value  of  articles  of  foreign  origin  shipped  out  of  the  United 
States  in  the  same  condition  as  imported  must  be  stated  In  the  column  of  "  Foreign  Products."  If 
foreign  articles  are  subjected  to  any  process  of  manufacture  or  alteration  In  the  United  States  they 
become  United  States  products  and  must  be  reported  as  such.  Thus:  Imported  raw  sugar  refined 
In  the  United  States  should  be  reported  as  a  domestic  product. 

7.  The  value  of  articles  to  be  stated  In  the  selling  price  or  the  true  market  value  at  the  time  and 
place  of  shipment  for  exportation. 

8.  Description  of  articles  exported  must  be  accurate  and  complete.  General  terms  such  as  dry 
goods,  groceries,  meats,  machinery,  millinery,  etc..  will  not  be  accepted.  In  the  case  of  cheese  the 
declaration  must  state  whether  filled  or  unfilled,  oleomargarine  whether  colored  or  uncolored,  butter 
whether  pure,  adulterated,  or  renovated 

9.  The  kind  of  packages  as  boxes,  barrels,  etc.,  and»the  netlwelght  exclusive  of 'outerlcoverlngs, 
must  be  specified. 

*  10.  The  total  quantity  of  each  article  expre.s,sed  In  the  usual  measure  of  pounds,  tons  of  2,240 
pounds,  yards,  gallons,  etc.,  must  be  stated.  Domestic  splrlta^exported  must  be  stated  In  gallon8_ol 
50  per  cent  alcoholic  .strength. 

11.  The  country  of  final  destination  of  goods — that  Is, 'the  country  to  which' goods  are  sold — 
must  be  shown.  Special  care  should  be  exercised  to  state  the  final  destination  of  goods  shipped 
through  Canada  to  Europe,  and  of  goods  to  be  transshipped  in  the  United  Kingdom,  the  Netherlands. 
Germany,  and  France  en  route  to  other  coimtries. 

12.  Inspection  certificates. — Process  butter  or  butter  adulterated  or  renovated  must  be 
accompanied  by  certificates  of  purity  issued  by  the  United  States  Inspector  of  dairy  products. 
Certificate  of  inspection  must  be  presented  to  the  Collector  for  meat  and  meat  food  products  exported 
when  required  by  the  regulations  of  the  Department  of  Agriculture. 

13.  Export  schedule  B  may  be  obtained  free  of  charge  from  the  Bureau  of  Foreign  and  Domestic 
Commerce,  Department  of  Commerce,  Washington,  D.  C,  and  will  be  of  much  assistance  tojezporters. 

To  the  Collector:    I  hereby  authorize 

to  act  as  my  agent  for  customs  purposes  In  the  exportation  of  tiie,.wlthln-deacrlbe(Kjkooda  Pl^e 
deliver  the  certified  duplicate  accordingly. 

Sbipt'er. 

Form  46b. — bacx  of  Shotbr's  export  declaration 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     149 


The  original  and  one  copy  of  the  declaration  covering  a  foreign 
shipment  are  retained  by  the  port  collector,  a  third  copy  is  pre- 
sented to  the  ocean  carrier  by  the  shipper^  and  the  fourth  copy 
is  delivered  by  the  shipper  with  his  merchandise  to  the  United 
States  inspector  of  customs  at  the  dock.  The  copy  delivered  to 
the  ocean  carrier  accompanies  the  cargo  and  is  delivered  at  the 
port  of  discharge  to  the  American  consular  officer  together  v^^ith 
the  ship's  manifest.  The  copy  presented  to  the  customs  inspector 
at  the  dock  is  delivered  to  the  vessel  after  he  has  made  notations 
of  short  shipment,  etc.,  and  is  then  attached  to  the  ship's  manifest 


Form  46. — Export  Meat   Inspection   Certificate 

Mrhich  is  delivered  to  the  port  collector  upon  clearance.  De- 
tailed instructions  are  contained  on  the  back  of  the  export 
declaration  reproduced  in  Form  45b.^ 

Special  inspection  certificates  need  to  be  presented  with  the 
export  declaration  in  the  exportation  of  certain  commodities 
where  required  by  the  Department  of  Agriculture.  The  export 
inspection  certificate  shown  in  Form  46,  which  covers  meat  or 
meat  food  products,  certifies  that  the  products  shipped  have  been 
inspected  by  an  inspector  of  the  Bureau  of  Animal  Industry  and 
passed  as  sound  and  wholesome  and  were  derived  from  animals 
that  were  free  from  disease.  Similar  forms  of  certificates  are 
issued  for  meat  or  meat  food  products  prepared  or  packed  in 
preservatives,   for  unedible  meat  products,  and   for  live  meat 

*  Since  writing  this  paragraph  the  war  requirement  of  four  copies  has 
been  abandoned.    Two  copies  are  now  required  as  before  the  war. 


150       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

animals.  Process  butter  or  butter  adulterated  or  renovated  must 
likewise  be  accompanied  by  certificates  of  purity  issued  by  a 
United  States  inspector  of  dairy  products. 

When  exports  containing  imported  materials  are  exported 
under  the  drawback  privilege  which  allows  the  exporter  99  per 
cent,  of  the  import  duty  paid  on  such  materials,  an  application 
must  be  addressed  to  the  Secretary  of  the  Treasury  for  a  draw- 
back authorization,  the  drawback  agents  of  the  customs  service 
must  be  advised  of  the  shipment  at  least  one  day  before  it 
leaves  the  factory  or  warehouse,  and  a  notice  of  intent  must 
be  filed  with  the  collector  at  the  port  of  exportation  before  the 
wares  are  loaded  on  the  vessel  or  before  they  cross  the  Canadian 
or  Mexican  border.  Special  records  open  to  Government  in- 
spection must  also  be  kept  by  the  manufacturer.  The  draw- 
back claim  must  be  completed  within  three  years  from  the  time 
of  shipment  by  filing  the  necessary  drawback  inspector's  certifi- 
cate, drawback  entry,  certificates  of  manufacture,  landing  cer- 
tificates or  bonds,  bills  of  lading  and  other  certificates  and  affi- 
davits required  by  the  customs  authorities.  The  complete  cus- 
toms regulations  covering  drawbacks  may  be  obtained  free  of 
charge  from  the  United  States  Treasury  Department. 

During  the  war,  exporters  were  also  required  to  obtain  export 
licenses.  Certain  shipments  of  small  value  were  licensed  by  the 
Collector  of  Customs  under  limitations  prescribed  by  the  War 
Trade  Board,  others  were  covered  by  special  licenses  issued  by 
the  War  Trade  Board  through  the  customs  service;  and  still 
others  required  individual  licenses  obtained  directly  from  the 
War  Trade  Board  upon  applications  filed  with  the  Board  or  one 
of  its  branch  offices.  American  houses  or  branches  established 
in  neutral  territory  or  in  countries  associated  with  the  United 
States  in  the  war  were  required  to  obtain  an  enemy  trade  license 
from  the  War  Trade  Board  before  performing  contracts  involv- 
ing trade  with  an  enemy  or  ally  of  an  enemy. 

Special  war  regulations  governed  the  exportation  of  condensed 
milk,  tin  plate  and  terneplate,  manufactures  of  tin,  gold,  cot- 
ton and  silk,  of  raw  cotton,  and  silk,  and  also  of  sugar,  wheat 
and  wheat  products  to  Canada.  Special  procedure  was  enforced 
in  the  case  of  exports  to  Norway,  Sweden,  Holland,  Denmark, 
Switzerland,  Great  Britain,  France,  Italy,  and  Belgium.  Since 
this  control  of  exports  by  the  War  Trade  Board  was  due  to 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     151 

a  temporary  war  emergency  it  is  not  deemed  desirable  to  de- 
scribe its  licensing  system  and  regulations  in  greater  detail. 
During  the  war,  however,  the  Freight  Traffic  Departments  of 
many  steamship  companies  had  special  license  number  clerks 
to  check  the  licenses  covering  cargoes.  License  numbers  were 
specifically  indicated  in  each  bill  of  lading. 

Official  Documents  Required  of  Importers 

The  United  States  Government  requires  the  importer  to  pre- 
sent the  bill  of  lading  covering  imported  cargo,  thereby  con- 
ferring upon  this  shipping  document  still  another  legal  function 
in  addition  to  those  mentioned  previously.  A  special  document 
known  as  a  consular  invoice  is  also  required  in  the  entry  of 
imported  merchandise  at  the  custom  house.  The  foreign  ex- 
porter is  expected  to  prepare  an  official  invoice  containing  a 
complete  list  of  the  items  shipped  to  the  United  States ;  how  they 
are  packed,  how  the  packages  are  marked,  their  quantity  and 
price  per  unit,  the  total  amount  paid  or  to  be  paid,  all  discounts 
and  rebates,  charges  for  brokerage  commissions,  insurance,  in- 
land freight,  and  packing,  and  the  cost  or  value  of  containers, 
twine,  and  paper.  The  consular  invoice  just  described  is  the 
so-called  purchase  or  blue  form  (see  Form  47a)  to  distinguish  it 
from  the  consigned  or  white  form  which  is  used  when  imports 
are  shipped  to  a  foreign  manufacturer's  American  branch  house, 
agent  or  representative  (see  Form  48a).  Since  the  imported 
wares  in  this  case  have  not  been  sold,  the  consigned  invoice 
shows  the  price  at  which  they  are  freely  offered  for  sale  in  for- 
eign wholesale  markets  and  the  price  which  the  foreign  exporter 
would  have  received  or  was  willing  to  accept  had  he  sold  them 
instead  of  consigning  them  to  the  United  States  to  be  sold  here. 

United  States  consular  invoices  are  usually  issued  in  tripli- 
cate, and  when  covering  merchandise  destined  to  interior  points 
in  quadruplicate.  They  are  presented  to  the  United  States  Con- 
sular Officer  in  the  consular  district  in  which  the  commodities 
were  produced,  purchased,  contracted  to  be  delivered  from,  or 
assembled  for  shipment,  for  his  certification ;  and  in  case  no 
United  States  consular  officer  is  available  they  are  certified  by 
other  individuals  authorized  in  the  United  States  Consular  Regu- 
lations. Should  the  consular  officer  be  of  the  opinion  that  the 
prices  or  value  stated  in  the  consular  invoice  are  incorrect  he 


152 


OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


Jfi^^iuyrKs^  iisrVoicE. 


flllWftnorftr    .Tilly  o°^;^^^^4 


Invoice  of  __S3iQkaA.^ee.t-aubl?.at 

hji  -Jotn-Doo  -&-Coppany. ,  of. Haw  York 

from  _^icJMu?d-Roe-4-Coii5>aay — ; ,  o/ — Slngflpora 

to  be  shipped  per  ...a/a-ICTRA-  to.IIaw  Yark 


.  purchased 


l-to-4W 


■Laaa..CJiar6aa..<"'*lucled.- 
ice: 


mix  DEscBimoN  of  goods.' 


-X^a-Caaoa-Smo!taa-3bflet_ 


— ^axxtatlog.Jti'.'b'bar 

cbtttalnlng^AiSa-plcula.. 

— at—iE'XlB-SlneaporjQi — 


Joolla-Lftbor.. 
.Bcet^Elra 


S<..744^X.- 


-Adja.-Chargea..not-laclvtded.. 
■  in  tho  above  price; 


.Packing 

•TslaSrama i~. 


.Consular— Iiuroloo 


»  B.~Aivv*'**»^'>*c*^o'V**^'Bg,Md*JloU)«r«««fcdiM«<a, 


-3A-l.Qi5.Qa8.(i. 


..ca>< 


D...eoo. 


stoooia. 


....atr&lta~iaQ7.2S. 


.ftp 


ifia. 

A-- 

....108.. 


.Q.O. 


.ao. 


,20. 
.AQ. 

.46.. 
I.-60 
00. 
25. 


OMnoLAB  Oonacnon  o« 


TAo  above  invoice  is  correct  and  true. 

(Signatvn nffvAMa or mIZct)  ,    RlChard-aoa-A-Compaoy- 


.  ^....itA.^^:*'^!^^!^::! 


^. 


Partner 


y7 


FoKM  47A. — United  States  Consular  Invoice   (purchased   form) 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT         153 


si 


s- 

■s 

>• 

CO 

■1 

i 

o 

UJ 

'^ 

^ 
£ 

i 

< 

.1 


ll  llllll 


imm. 


viililiiili 


154       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

states  what  he  regards  the  correct  value  to  be  under  the  head- 
ing "consular  notations."  The  invoices  are  required  to  be 
stamped  and  the  stamps  to  be  canceled  by  consular  officers  to 


^KHiJtUXX^XA^ 


INVOICE. 


Tnvoioe  of  ^ Plantatlon-Rubbap. 

by  — Tha  Mfti /lyalA  .Bubb«r_Coii]papy- <  of tn«ni«  T.^t^TMr 

to  — aichard-Rrift  k  Cnmpany ,  of     Fhlladalphla 

to  be  shipped  per  _a/fl..IHDRA  to  Han-Jtorle , 


Uaiu, 

KuVBliul.ur 


CMU,  obwcw,  u4  upstueo. ) 


jacAQ-lb.  miT p"f  ih. 


— EOB-Slngapore- 


-Chargfls.  Included, in-tha- 
above  price:    ■ 


.-iaskterdge-iu:x)adin^ 


-grelght  to  SlTigapore- 
—Conaiilai*— InToloa 


.JP.aoklns- 


-eAi- 


4>-«4^fa 


-ft^C 


S^.-«)- 


e     1;1 


S^i4T«0 


^ft- 


*S- 


C«KiuiJiK  GoMRBcnoira  c 


7%e  above  invoice  is  oorreot  arid  true. 


Tha  Walayqlft  Ruhhar  rnmpany 

_??5_Pr.%^fe»»«y..*C*.iAL_ 


Form  48A.— United  States  Consular  Invoice   (consigned  form) 

show  the  payment  of  fees.  The  master  of  a  vessel  arriving 
from  abroad  is  required  by  the  customs  officials  to  present  copies 
of  all  the  consular  invoices  covering  the  cargoes  which  are  to  be 
unloaded,  and  each  importer  or  his  agents  needs  to  present  the 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     155 


original  consular  invoice  covering  his  merchandise  when  clear- 
ing it  through  the  custom  house. 

The  prices  or  values  shown  in  a  purchased  invoice  are  stated 


t^i 


\s  * 


|2t 


=  11 


I" 


j«     '^  '>'g  S-.S  Sf  I 


^^ 


|-5.iS|^|||  11 


t\ 


."^> 


[^   4 


If  I 

I     I  ^ 

U  I 

?  I  i  I 


•Jill  111 


•5       " 


•     3 


1      ^ 


Form  48B. — (Back  of  Form  48A) 

in  the  currency  of  the  particular  transaction:  in  United  States 
dollars  if  the  transaction  was  in  American  currency,  and  in 
pounds  sterling  if  in  British  money,  or  in  German  marks  if  in 
German  money.     In  case  of  a  consigned  invoice,  on  the  con- 


156       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

trary,  the  prices  or  values  are  stated  in  temis  of  the  currency 
of  the  exporting  countr>\  If  a  depreciation  in  currency  has 
occurred  the  United  States  Government  requires  a  currency  cer- 
tificate to  be  attached  to  the  consular  invoice  showing  the  per- 
centage of  depreciation  as  compared  with  the  standard  currency 
and  the  value  in  such  standard  currency  of  the  total  amount  of 
the  depreciated   currency  included  in  the  invoice. 

The  consular  invoice  is  required  for  all  imported  merchandise 
exceeding  $100  in  value,  except  personal  effects  accompanying 
a  passenger.  If,  however,  an  importer  is  for  reasons  beyond  his 
control  unable  to  produce  such  an  invoice,  the  port  collector  may 
permit  him  to  enter  his  imported  merchandise  on  a  pro  forma 
invoice  prepared  on  a  prescribed  form,  accompanied  with  a 
bond  covering  double  the  amount  of  estimated  duties,  or  if  the 
merchandise  is  free  of  duty,  for  the  sum  of  $100.  Neither  a 
certified  consular  invoice  nor  an  application  made  on  a  pro  forma 
invoice  is  necessary  in  entering  merchandise  valued  at  less  than 
$100. 

The  entry  of  all  importations  whether  free  or  dutiable,  at 
the  custom  house  by  the  importer,  or  a  licensed  custom  house 
broker  acting  for  him,  is  carried  out  in  accordance  with  a  highly 
technical  code  of  customs  regulations.  The  documents  or  forms 
required  are  too  numerous  for  complete  description.  They  vary 
according  to  kinds  of  entry  as  follows :  entries  for  consumption, 
warehouse,  combined  warehouse  and  immediate  exportation,  re- 
warehouse,  combined  rewarehouse  and  withdrawal  for  consump- 
tion or  for  immediate  exportation,  withdrawal  at  original  and 
secondary  ports  for  consumption  or  exportation,  preliminary 
entry  and  immediate  delivery  and  informal  entry  including 
entry  by  appraisement,  immediate  transportation  without  ap- 
praisement, transportation  and  exportation,  withdrawal  from 
warehouse  at  original  and  secondary  ports  for  transportation, 
exportation  with  benefit  of  drawback  duties,  customs  mail  en- 
tries, and  baggage  declarations  and  entries.  Further  variation 
is  due  to  separate  requirements  for  different  kinds  of  imported 
goods. 

Altogether  there  are  several  hundred  forms  which  are  vari- 
ously used  in  the  entry  of  imports.  They  are  variously  sup- 
plied free  of  charge  by  the  United  States  Government,  sold  by 
privileged   individuals,   or   printed   privately  by  the   importers. 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     157 

Some  are  obtainable  at  one  office  and  others  at  another.  As 
the  customs  officials  offer  no  assistance  in  preparing  them,  the 
services  of  a  specialist  are  usually  essential. 

The  correct  entry  form  prepared  by  the  importer  or  his  agent 
must  be  presented  with  the  bill  of  lading  and  consular  invoice. 
On  it  he  is  required  to  list  the  imported  wares  by  description, 
shipping  marks  and  numbers,  to  state  the  foreign  value  of  each 
kind  of  merchandise  according  to  its  classification  in  the  tariff 
laws,  and  to  state  the  rate  of  duty  applicable.  The  price  or 
value  stated  in  the  consular  or  pro  forma  invoice  needs  to  be 
raised  or  lowered  in  the  entry  blank  so  as  to  disclose  the  true 
wholesale  market  value  of  the  wares  prevailing  in  the  foreign 
country,  not  on  the  date  of  invoice,  but  on  the  day  of  departure 
of  the  vessel,  or  in  case  of  shipments  from  inland  countries 
the  day  they  crossed  the  frontier.  To  this  wholesale  market 
value  are  added  cost  items  such  as  packing  charges,  the  dutiable 
value  being  the  wholesale  market  value  of  the  wares  packed 
ready  for  shipment. 

The  entr}'  blank  is  accompanied  by  an  importer's  declaration 
and  oath,  the  form  of  which  is  different  for  purchased  wares 
than  for  goods  that  are  received  on  consignment.  In  the  offi- 
cial "Customs  Regulations  of  the  United  States"  issued  by  the 
Treasury  Department,  Division  of  Customs,  under  the  chapter 
heading  "Invoices,  Entry  and  Assessment  of  Duties"  may  be 
found  a  detailed  list  of  many  customs  forms  classed  according 
to  the  various  kinds  of  entry  that  were  enumerated  above. 

Custom  House  Brokers  and  Shipping  Documents 

The  entry  of  imports  requires  so  much  technical  information 
and  such  an  intimate  knowledge  of  custom  house  practice  that 
it  has  become  a  business  or  profession  for  many  "custom  house 
brokers."  These  men  are  licensed  by  the  collector  of  customs 
in  the  district  in  which  they  operate.  They  act  as  agents  for 
importers  in  the  clearance  of  imports  through  the  custom  house. 
They  attend  to  the  necessary  formalities,  advise  the  importer 
as  to  estimating  import  duties,  pay  the  duties  and  turn  over  the 
delivery  order  which  they  receive  from  the  Port  Collector  to 
the  importer,  or  to  his  truckman  or  forwarder.  They  similarly 
look  after  the  part  of  the  shipment  held  by  the  appraisers  for 


158       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

examination  and  attend  to  final  liquidation  of  the  duties.  Should 
the  importer  elect  to  place  his  merchandise  into  a  bonded  ware- 
house, his  custom  house  broker  will  arrange  this  for  him  and 
see  that  they  are  cleared  when  the  importer  is  ready  to  withdraw 
them.  If  the  imported  goods  are  ordered  for  direct  shipment 
from  the  ocean  port  to  an  interior  destination  so  as  to  avoid 
double  handling,  a  custom  house  broker  may  be  engaged  by  him 
to  act  as  his  forwarding  agent.  He  will  as  such  forward  the 
goods  to  the  interior  point  in  bond  in  conformity  with  the  re- 
quirements of  the  custom  service.  The  goods  are  transferred 
to  bonded  railroad  cars  in  bonded  trucks  or  lighters,  and  are 
shipped  under  a  special  "carrier's  manifest  of  mercJmndise  in 
bond,"  the  carriers  assuming  the  responsibility  of  seeing  that  the 
imported  merchandise  will  not  be  tampered  with  until  word  is 
received  from  the  interior  customs  officer  to  the  eflfect  that  all 
requirements  of  the  customs  service  have  been  complied  with. 

The  fee  paid  to  custom  house  brokers  by  importers  usually 
ranges  from  $3  to  $5  for  each  shipment.  It  is  generally  not 
based  upon  the  value  of  separate  shipments,  for  the  amount  of 
work  required  may  be  no  greater  for  a  valuable  consignment 
than  for  one  involving  a  small  sum. 

Custom  house  brokers  are  also  a  factor  in  the  operation  and 
trafiic  management  of  the  steamship  business,  for  they  frequently 
attend  to  the  entrance  and  clearance  of  vessels  for  their  owners 
or  agents.  The  master  of  a  vessel  when  conforming  to  the 
customs  requirements  at  the  custom  house  is  usually  accom- 
panied by  a  custom  house  broker,  and  the  customs  documents 
required  of  steamship  companies  in  entering  or  clearing  vessels 
in  the  foreign  trade  are  frequently  made  out  for  the  company  by 
a  custom  house  broker  with  whom  it  has  a  standing  arrange- 
ment. Instead  of  having  their  own  customs  clerks  the  traffic 
departments  of  a  line  may  depend  largely  upon  a  broker  to 
handle  its  entry  and  clearance  papers. 

Should  there  be  dissatisfaction  with  the  appraisement  de- 
cisions of  the  customs  officers,  appeals  may  be  made  to  the  Board 
of  General  Appraisers.  Cases  involving  the  rate  or  amount  of 
duty  or  the  application  of  the  administrative  provisions  of  the 
customs  laws  may  also  be  appealed  to  this  Board,  and  may  be 
further  appealed  to  the  United  States  Court  of  Customs  Ap- 


DOCUMENTS  REQUIRED  BY  U.  S.  GOVERNMENT     159 

peals,  and  in  rare  cases  to  the  United  States  Supreme  Court.- 
These  appeals  from  the  customs  officers  are  so  technical  that 
specialized  lawyers  known  as  "customs  attorneys"  are  frequently 
engaged  by  dissatisfied  importers. 

"See   Carl  W.   Stern,  "Importing  with  Special   Reference   to   Customs 
Requirements." 


^^ 


-IZ? 


(ji?*"^^ 


CHAPTER  X 


SHIPPING   DOCUMENTS    REQUIRED    BY    FOREIGN    GOVERN- 
MENTS IN   UNITED  STATES   EXPORT  TRADE 

Besides  the  documents  required  by  the  carriers  in  their  deal- 
ings with  shippers  or  in  the  conduct  of  their  freight  transpor- 
tation services  and  those  required  by  the  United  States  Govern- 
ment, the  requirements  of  foreign  governments  w^ith  respect  to 
shipping  documents  used  in  the  American  export  trade  are  an 
important  consideration  to  ocean  carriers  and  exporters. 

The  requirements  of  various  countries  with  respect  to  ships' 
manifests  have  already  been  referred  to,  as  also  have  those  con- 
cerning bills  of  lading.^  The  latter  are  of  particular  importance 
to  exporters  and  ocean  carriers  shipping  cargoes  to  the  Latin- 
American  countries  and  to  Russia,  Italy,  France  and  Portuguese 
East  Africa.  The  governments  of  many  of  these  countries  re- 
quire bills  of  lading  to  be  certified  by  their  consular  officers,  and 
some  of  them  enforce  consular  regulations  as  to  their  contents, 
the  making  of  corrections  or  erasures,  or  the  issue  of  all  copies 
in  the  same  handwriting.  In  several  instances  cargoes  may  not 
be  consigned  to  order. 

Consular  Invoices 

In  the  same  way  that  foreign  shippers  exporting  cargoes  to 
the  United  States  are  required  to  prepare  consular  invoices,  so 
the  governments  of  Bolivia,  Brazil,  Chile,  Colombia,  Costa  Rica, 
Cuba,  Ecuador,  France,  Guatemala,  Haiti,  Honduras,  Mexico, 
Nicaragua,  Panama,  Portugal,  Santo  Domingo,  and  Venezuela 
require  American  exporters  to  prepare  consular  invoices,  and 
shipments  to  the  Philippine  Islands  from  the  United  States  are 
also  subject  to  this  requirement.  Foreign  regulations  govern- 
ing consular  invoices  are  by  no  means  uniform.  In  some  in- 
stances they  apply  to  all  cargoes  and  in  others  only  to  certain 

*  Chapter  VII. 

i6o 


DOCUMENTS  REQUIRED  BY  FOREIGN  GOVERNMENTS    161 

commodities,  and  they  vary  as  to  language  requirements,  num- 
ber of  copies,  form  and  contents.     The  Brazilian  consular  in- 


Via    FACTURA  <:ONSULAR  BRAZILEIRA  (BRAZILIAN  CONSUUR  INVOICE) 

D? 

Consulabo  (5eral  em  flova  ©orlt 

DE.CLAR.ACAO  (DECLARATION) 

Decldr^mos  solemnementf  que  somas  txporladores  ou  carrfgadores 
W*    iofemidy         iedttrt        tAat      we      art       the      exporien        or       ikippert 

<&t    mrcadorioi    mencionadas   nesla  Jactura  cmtidas  noi^^l^L—volumei 
of    the    mervhandw     ipecifled    in     thit     nnxxnee,     amtaitud    in     tht  pQeJngt9 

induades,     a     gual     f     txacla     t     verdadtira     a     todos     os      tfftitoi^ 
indicated,  vihicH  is  in  a//  respects  true  and  exad^ 

undo  essas  mercadarias  distinadas  ao  porta  d^     '^^°  ^'  Janttro 
/Ati      merchandise      tetTjg      destined     to      the     ferrt     of 


do  Brazil  e  consignadai   aos  Snrs 

Braat      and      tansigned       to       Messrs        Bias  Bass       i.  Ca. 


Of  Rio  de  Janeiro       j^^^  York__de^J}illIl de  /p  W 


.yigenU  da  Exportitdor 

Agent        of  Exporter 


Nome  e  nacionalidade  do  navio  &  ^I'l^  

piame  and-Juititmattty  of  sailing  vessel 

NoTtte  e  nacumalidadf  do  navio  a  vapor Qaaee j^me-j  -f., 

t^ame  and  nationality  of  steamer 

Porto  do  embarque  da  mercadoria N^g  Ynrif 

I^/rt  of  shipment  oj  the  merchandise 

Porto   do    deslino    da    mt^rnifiyrin  Rio    de   .Tanai  m 

Port  of  destination  of  the  merchandise 

Porto  do  deslino  da  mormdnrin  rnm  opfOO  parcL. 

Jbrt  of  destinaiicn  of  the  merchandise  Tvith  option  for 

Porta  do  deslino  da  mi^rnil/yrin  rm  transilo  para^ 

fMofdestiTiation  of  the  merchandise  in  transit  for 

Valor  total  da /actura  inclusive  frele  e  despezas  approximadas  jf  X.  397. 55 
Total  value  of  the  invoice  inclusive  of  approximate  freight  and  charges 

Frete  e  despezas  approximadas  ,g  4f..50  _____„__„ 

Approximate  freight  and  shipping  charges 


Agio  da  moeda  do  pais  de  procedenda^ 
^£xchange  of  the eottntry  whence  exported 


OeSERVACOEB    DO   CONSUL 


VL&TO.    Coosniado  Qeral  dos  E.  U.  do  Brasil. 

fifovti  York...    .  ,d* .  .1   ...  rffjy— . 

P/^tf  $1.65 


Form  49A. — Brazilian  Consular  Invoice 

voice  reproduced  in  Forms  49a  and  49b  contains  the  name  and 
nationality  of  the  vessel,  names  of  the  ports  of  export  and  des- 


162       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

tination,  total  value  of  all  the  merchandise  listed  in  the  invoice 
inclusive  of  approximate  freight  and  charges,  a  separate  state- 
ment of  approximate  freight  and  charges,  the  exchange  of  the 
country  whence  exported,  a  description  of  the  merchandise,  its 
marks  and  numbers,  quantity  and  description  of  packages,  de- 
scription of  contents,  gross  and  net  v^^eights  in  kilos,  other  units 
of  the  Brazilian  tariff,  the  value  of  each  article,  the  country 
of  origin,  observations  and  certification  of  the  Brazilian  con- 
sular offices,  and  a  certification  by  the  shipper  that  he  is  the 
exporter  of  the  merchandise  listed  in  the  invoice,  that  the  state- 
ments contained  in  the  invoice  are  true  and  exact  and  that  the 
shipment  is  destined  to  a  named  Brazilian  port  and  is  consigned 
to  a  designated  consignee. 

In  arranging  the  consular  invoice  as  well  as  other  consular 
documents  required  by  some  foreign  countries,  care  needs  to  be 
taken  in  the  exact  information  called  for.  A  distinction  is,  for 
example,  sometimes  made  in  foreign  consular  regulations  be- 
tween "gross,"  "net,"  and  "legal"  weight.  Gross  weight  when 
such  distinction  is  made  is  the  entire  weight  of  the  package,  the 
container  as  well  as  its  contents.  Net  weight  on  the  contrary 
may  be  either  the  weight  of  the  merchandise  in  its  original 
package  without,  however,  including  the  weight  of  the  out- 
side shipping  container;  or  it  may  be  merely  the  weight 
of  the  merchandise  without  including  either  its  original  cover- 
ing or  the  shipping  case.  In  Mexico  where  this  distinction  is 
made  the  term  "net"  weight  refers  to  the  weight  of  the  mer- 
chandise without  any  covering  whatever;  while  its  weight  in  its 
original  covering,  which  may  be  a  box,  bottle,  paper  wrapping 
or  other  inside  protection — but  without  including  the  shipping 
case — is  known  as  its  "legal"  weight.  Whenever  the  terms  net 
or  legal  weight  are  used  in  consular  invoices  it  is  necessary  to 
ascertain  their  exact  meaning. 

Certificates  of  Origin 

Various  foreign  countries  require  the  exporter  to  prepare  a 
"certificate  of  origin."  Each  of  the  following  countries  re- 
quires this  consular  document  either  for  all  exports  shipped  to 
it  or  only  for  certain  commodities:  Argentina,  France,  French 
East  Africa,  Italy,  Japan,  Paraguay,  Portugal,  Serbia,  Russia, 


DOCUMENTS  REQUIRED  BY  FOREIGN  GOVERNMENTS    163 


,      „.•**.•* 

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164       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Spain  and  Uruguay.  Countries  requiring  a  consular  invoice 
usually  do  not  also  require  a  certificate  of  origin  because  the 
former  usually  indicates  the  origin  of  the  merchandise,  but 
various  countries  include  both  documents  in  their  consular 
regulations. 

As  in  case  of  consular  invoices  certificates  of  origin  are  not 
uniform  as  to  form,  contents,  number  of  copies,  etc.  The  Ar- 
gentine certificate  reproduced  in  Form  50  calls  for  a  listing  of 
the  names  of  the  vessel  and  captain,  the  vessel's  flag,  the  num- 
ber of  the  bill  of  lading  which  is  also  certified  by  an  Argentine 
consular  officer,  the  shipping  points,  the  marks,  numbers,  quan- 
tities and  class  of  the  packages,  class  of  merchandise,  quantity 
in  weight  or  size  and  the  country  of  origin.  Three  copies  pre- 
pared in  English  need  to  be  presented  to  the  Argentine  consular 
officer  for  his  vise.  The  consul  certifies  that  the  shipper  by 
means  of  this  document  has  given  proof  that  the  merchandise 
contained  in  the  packages  referred  to  originated  in  the  country 
mentioned  in  the  column  headed  "country  of  origin  of  the  mer- 
chandise." One  copy  is  kept  by  the  consul  while  the  other  copies 
are  delivered  to  the  ocean  carrier  by  the  shipper. 

The  Argentine  certificate  of  origin  reproduced  in  Form  50  is 
prepared  in  Spanish,  for  it  is  the  official  form  provided  by  Ar- 
gentine consular  officers.  Many  exporters,  however,  make  out 
the  certificate  on  forms  in  which  the  declaration  and  descrip- 
tion of  shipment  are  in  English  and  only  the  consular  certifica- 
tion at  the  bottom  is  printed  in  Spanish.  These  forms  which 
are  sold  by  a  private  firm  in  New  York  are  acceptable  to  the 
Argentine  officials.^ 

Certificates  of  origin  have  a  direct  bearing  upon  the  import 
duties  collected  in  countries  where  merchandise  produced  in 
the  United  States  is  entitled  to  reduced  or  preferential  rates  as 
compared  with  foreign  merchandise  subject  to  the  maximum 
tariff  rates.  Several  of  the  countries  requiring  this  document 
have  double  tariff  schedules  under  which  the  lower  schedule 
applies  to  all  or  to  certain  specified  articles  of  United  States 
origin.  In  other  countries,  as  Argentina  and  Paraguay,  the 
certificate  of  origin  is  required  for  statistical  purposes. 

Where  the  origin  of  merchandise  is  not  officially  shown  in  a 
consular  invoice  or  certificate  of  origin  and  a  country  desires 

'  Statement  by  Vice  Consul  of  Argentina  at  Philadelphia. 


DOCUMENTS  REQUIRED  BY  FOREIGN  GOVERNMENTS     165 


Ej  enpl ar 

Declaracion  y  certificado  de  origen  de  mercaderias 

EL.  ..  que  fuscribe..^.  de'profesifin  ...Conor.cicMte  dumiciliado    e«  Eiladelf  ia — ^^..  declara^^ 
dc  acueido  con  cl  Dcnclo    <h  31  Dicicmbrc  dc  1001.  que  las  Mercaderias  cspecificadas  a  conlinuacion 

han  sido  embarcadas  a  bnrdo  rfc/....itapor.  americano  _rSeriQca."  Capiian John.  Do.a.._«_ _: 

de  ftanrfera  ...to.eci.Cana scgun  conocimieiilo  N"  .),..._ y  proceden   de  tos  puntos  que  se 

expresan  a  continuacivn : 


B  U  L  T  0  S 

design&ciOn  de  la  mercaderia 

PESO 

PAIS  DE  ORIQEN 

MARCA 

N.M 

JANTiDAD 

CLASe 

KlUOS 

MERCADERIAS 

_F»C,5 

.  1--6P. 

-....60_ 

c&itts 

Spmbf^rpa 

_100 

Estjidos  Unidoft     .. 

—■■- 



PHiladelpKia,  finero  1  "de  1 

919 

John  Smith' 



Por..XA..jL...,.,^Vr»^>vtt-r   . 



^ 

• 



,    . 

N°  i^l  certificado....! . 

H°  del  conocimjento..! 


Filadelfia* 1 de...Ka«r.Q^. 


.</4/589L 


Cerlifico  que  r-OK-  Senor_  J.Qhll..Sn)ith. „  ha _  comprobado  par  medio  de..X& 

-preaente .„, _ que  Ids  inercaderias  contcnidas  en  Ins..  60  ...  Oullos  ci  que  se  refieie  la 

presenic  dcdaraoidn  s'i»t  oiightariat  dc  tos  paises  mencionados  en  la  columntt  corrcspondienle. 

^\^  De  que  doy  (L 


it  l»  Republic* 
e  tn  f  JlaiJslAa, 
A. 


^^■■1 


Form  50. — Argentine  Certificate  of  Origin 


166       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

knowledge  of  Jts  origin,  it  may  require  that  the  name  of  the 
country  of  origin  be  stamped  on  manufactured  wareS;  or  that 
the  words  "made  in  United  States  of  America"  or  similar  in- 
dication of  origin  be  shown  on  each  shipping  package. 

Commercial  Invoices 

While  a  commercial  invoice  is  regularly  prepared  by  Ameri- 
can exporters  as  a  private  document  to  be  attached  to  inter- 
national bills  of  exchange  or  drafts  together  with  the  bill  of 
lading  and  a  marine  insurance  policy  or  certificate,  or  to  collect 
from  the  foreign  purchaser  in  other  ways ;  and  also  to  assist  the 
purchaser  in  clearing  his  goods  through  the  foreign  customs 
house,  it  is  in  sorne^jzauntries. -subject  to  consular  regulations. 
Thus  the  consular  regulations  of  the  Philippine  Islands  require 
it  to  contain  a  statement  of  the  country  of  origin ;  those  of  Porto 
Rico  covering  medicinal  articles  require  a  statement  of  their 
alcoholic  contents;  those  of  Jamaica  require  commercial  invoices 
to  contain  the  statement  that  "the  cost  of  outer  package  is  in- 
cluded in  the  cost  of  the  goods";  those  of  Paraguay  that  two 
copies  be  certified  by  a  consular  officer;  those  of  the  Bahamas 
that  they  be  signed  by  a  responsible  member  or  employee  of  the 
exporting  firm.  Some  of  the  countries  which  require  a  consular 
invoice  also  prescribe  the  contents  of  commercial  invoices  and 
several  of  them  require  that  they  be  certified  by  the  consular 
officer.  Various  countries  require  certain  items  as  to  net  and 
gross  weight,  etc.,  to  be  included. 

Non-Dumping  or  Value  Certificates 

The  commercial  invoices  covering  exports  to  several  of  the 
British  colonies  are  virtually  non-dumping  or  value  certificates 
as  well  as  invoices.  The  consular  regulations  of  Australia  re- 
quire a  statement  of  the  domestic  value  of  the  exported  products 
F.O.B.  port  of  exportation  at  date  of  shipment  and  also  of  any 
discounts  for  cash  that  apply ;  and  the  exporter  is  required  to 
sign  a  statement  to  the  effect  that  the  invoice  in  addition  tO' 
showing  the  price  actually  paid  or  to  be  paid  also  shows  "in  a 
separate  column  the  actual  price  at  the  date  of  this  declaration 
of  equal  quantities  of  identically  similar  goods  to  any  purchaser 


DOCUMENTS  REQUIRED  BY  FOREIGN  GOVERNMENTS  167 

for  home  consumption,"  that  no  different  invoice  will  be  fur- 
nished to  any  one,  and  that  there  are  no  arrangements  as  to 
discounts,  rebates,  salary  or  compensation  other  than  such  as  are 


CertlfieiJ-  Invoices  In  dapHcAte  are  reqnired  by  Cn^toma  Authorities  io  Canada  before  rteltv^ry  oJ  goods  will  be  matlo 
to  eonsiffuee.  These  Cerlifietl  lavoii-cs  should  be  sent  direct  to  coosignte  by  Coveroment  Mail,  or  may  accompany  ihd 
»hipmeTit  if  shipper  desires,  (II  coasigoee  desires  copy  o(  Invoice  for  his  owo  6i«s  it  should  be  executed  by  the  ftbippef 
ia  tripUcate.) 

Invoice  of  goods  for  export  to  Canada,  sold  by  exporter  prior  fo  shipment. 

(Ptac.  and  i.U)_K?W..Yorlt., iU\X_,  lOj, 19l9_ 

i^,^^«i    .       Portable  CasoUna  Enfiinea  ; purchM«4 

j^ JohB_Joiiaa jH M_?!}j;r*?i.i_..f^''.'!'?_ 

from. 


J>Des     3iiiith   &.  Conpiny 


New  York,   U.S.A. 


to  bf  ihlTpfd  ptr  AMERICAN   EXPRESS  COMPANY 


QOANTITIEa  AND  DE3CBIPTI0S  OF  GOODS 

Fair  nirk*t  vtlu« 
u  Gold  for 

pt,'!b" 

K,r!rc.v.^* 

P.tl.tc. 

Ao,o>,n, 

yv 

- 

xy 

4 

portable  Oasoline  Engines 

$360 

»380 

»1,520 

Montreal 

1/4 

, 

CERTIFICATE  FORM  M. 

It  th«  undersigned,  do  herehj/  certify  as  follows : __ 

0)  That  I  ain  the  (c) ffi.anB.£?!r . exporter  of  the  goods  in  the  above  lovolce  mentioned  or  deicribcd) 

(2)  That  the  said  invoice  is  in  all  respects  correct  and  true; 

(3)  That  the  said  invoice  contains  a  true  and  full  statement  showing  the  price  actually  paid  or  to  be  ptdd  for  the  Skid 
CDOds,  the  actual  quantity  thereof,  and  all  charges  thereon  i 

(4)  That  the  said  invoice  also  erthititsthcfairmarket  value  of  the  said  goods  at  the  time  acd  place  of  their  direct  expoK 
tation  to  Canada  and  as  whci  sold  at  the  same  tine  and  place  in  like  quantity  and  condiUon  for  hoxe  consumption,  in  ths 

,  principal  markets  of  the  country  nhcnrc  exported  directly  to  Canada,  ^.-ithout  any  discount  or  deduction  for  cash,  or  on  account 
of  any  drawback  or  bounty,  or  on  accouct  of  any  royally  actually  payable  thereon  or  payable  thcrec'n  when  sold  for  home  eoo» 
mmption  b'-it  tot  payable  when  exported,  or  on  account  of  the  exportation  thereof  or  fcr  any  special  consideration  whateveri 

(5)  -That  r.o  different  invoice  of  the  goods  mcctioned  in  said  invoice  has  been  or  will  be  furnished  to  any  one ;  and 

(C)  Tliat  no  arrangement  or  ucdcrstanding  affecting  the  purchase  price  of  the  said  goods  has  been  or  will  be  made  of 
entered  into  between  the  said,  exporter  and  purchaser  dr  by  any  one  on  behalf  of  either  of  thcirt,  either  by  way  of  discount, 
rebate,  salary,  comp€iiS3tioD,'or  in  aoy  n-xnner  whatsoever  other  than  is  shown  in  the  said  invoice. 

D,t«i  ft       Netr  York. this VPIJL. diy  of iilZ 10li_ 


Form    51. — Canadian    Invoice    of    Goods    Sold   by    Exporter    Prior   to 

Shipment 

shown  in  the  invoice.  Similar,  although  not  identical,  require- 
ments apply  to  commercial  invoices  covering  exports  to  New- 
Zealand  and  British  South  Africa;  and  Newfoundland  requires 


168       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

the  exporter  to  sign  a  statement  before  a  notary  to  the  effect 
that  "this  invoice  is  true  and  correct,  and  the  prices  charged 
are  not  less  than  the  regular  prices  charged  in  the  United  States." 


Iov)icej  In  dnplicate  should  accompany  the  p>od»  info  Canada,    nnJ   a  Copy  be  »cnt  direct  by  mail 
to  the  consicope. 


Invoice  of  goods  lor  export  to  Canada  shipped  on  consignment 
without  sale  by  exporter. 

Oh)  ~ 


,  (n.ce  md  j.tt) New_.y.i?clu_ 

tiiTOlMef        porta bl«  (UaoUne  Englna» ^ 

Jame?  Saith .Jt...C9'»P«r>y of !!??.-IHJ!ji.J?j'.I'*il_ 

Jchn  Jojies ^ .H!!n.t.r*.<».L. .  C*!«!*»_ 


10  t»  .hlppeJ  ptr  AWrSICAN  EXPRESS  COKPANY. 


\lu\»  m4  MuaWr> 

ODAKTITIES  AND  DEKRIPTIOM  Of 

=O0O, 

-^"i^ 

tt  V.I..  M  VM  lot 

PftckAfts 

a 

A»™i 

r"j^\  " 

-5^ 

4  portabla  C^aoliTid  EnglnaB 

t360 

11,440 

■■'  Monfreal 

1/4 

DECLARATIOS  FORM  N. 
(To  b«  attesicij  to  b<torc  i  BrItJib  or  otbcr  C«iuiiL  Nottry  PabSc  or  other  oindcl  ntboHied  lo  hiaia^ttu  Oiiki). 

I.  (., 73!?.'19 Barri?. „,  („  ^ll!.l°lh.l.ih!!ji.^ 

4d  solemiily  and  truly  ileclare  aft  follows: — 


Montreal 


of  tbe  goods  shipped  oa  ooiuis:iim«st 


(1)  That  I  am  (c) mflim£fir_.fi£..Jfla»_5aiilL.&_Co* 

to  (d) J?r?.n  .Jpn«o tt — 

r^H«H«  ^od  described  >□  the  nbove  io voice: 

(2)  That  tbe  said  invoice  is  a  complete  and  true  invoice  of  all  tbe  aaid  goods  iocladed  Is  this  shipment 

(3)  That  the  said  goods  are  propeTly  dtrcrbed  in  the  said  invoice. 

(4)  That   there   is  inclu<l-d   and   specified   ia    the    s^id   invoice   the  troe   Tslne  of  all   cartons,  cases,  c^atc^  toies 


rpeosea  iocideat  to  plying  the  goods  in  condition   packed  ready   (or 
(S)     That  none  of  the^d  gix)ds  have  beea  sold  by  or  on  bchalC  of  tha  owner  aforesaid  to  any  per^n,   firm 


rin^  of  my  kind,  and  all  charges  i 
abtpment  to  Canada. 

,  t  behalf  of  tha 

corporation  in  Canada.''      ', 

(6)  'That  the  said  lirokt  contiias  a  just  an!  fiithfnl  valnaticn  of  snch  goods  at  tJieir  fair  market  value  as  sold  for 
home  consumption  in  the  pdocip-il  rurVels  of  the  coantry  whence  the  fame  arc  exported  directly  to  Canada,  and  that  such 
fair  market  value  is  the  price  at  which  the  slid  gooils  ara  freely  offered  for  sale  in  like  quactily  and  condition  by  me  or 
by  dealers  therein  to  purchasers  in  said  riMlccts  in  the  onlinAry  coarse  of  trade  at  the  usoal  credit,  wilhoatany  discount 
or  dednct'cm  for  cash,  or  on  acconnt  of  any  drawback  or  bounty  or  on  account  of  any  royally  actually  payable  thereon, 
or  payable  thereon  when  sold  (or  home  consumption,  but  not  payable  whea  exported,  or  on  account  of  the  exporuuoo 
thereof,  or  any  special  con  si  deration   whatever. 

(7)  That  if  the  value  for  doty  of  any  good-*  as  dated  in  this  Invoice  Is  other  than  the  valne  thereof  as  above  specified, 
•och  v»Itie  for  duty  hm.  to  the  be*t  cf  ny  koowl-ylifc  and  beUef.  been  fixed  and  detenaiocd  under  the  authority  ol  Uff 
CvstotDS  Act  at  the  value  sUtcd  in  fcfjd  invoice;  and  « 

(8)  That  no  diffen:nt  iavcice  or  acconnt  thereof  has  been  or  will  be  fnnushed  to  soy  oat  by  fflt  of  oo  By  bchalL 

t>«cu,edat, _Jiew..Yc^xK,.y.S.A» 1 

this—.- — — .-dayof »— < . 191 I  

before  tne — — — — — — I 


W  '   Nas*  «l  partr  MbKribinr  to  tbtt  dMlkntlaa.  (b) 

fkr  Bane  of  tbe  Km  whea  tbe  Bbipaeiit  U  a^e  by  ■  Lm,  or  ko  e< 


actabe*  ot  tbe  tn 


Form  52. — Canadian  Invoice  of  Goods  Shipped  on  Consignment 


The  Canadian  Government  has  approved  two  forms  of  invoice, 
each  with  a  non-dumping  certificate.  The  Canadian  certificate 
for  merchandise  sold  by  the  exporter  prior  to  shipment  is  re- 


DOCUMENTS  REQUIRED  BY  FOREIGN  GOVERNMENTS    169 

produced  in  Form  51,  and  the  blank  used  when  exports  are 
shipped  to  Canada  on  consignment  without  sale  by  the  exporter 
in  Form  52.  The  former  shows  the  actual  selling  to  the  Canadian 
purchaser  and  also  the  fair  market  value  as  sold  for  home  con- 
sumption in  the  principal  markets  of  the  United  States;  and  the 
latter  only  the  fair  market  value  as  sold  for  home  consumption. 
Any  wares  which  are  entitled  to  reduced  import  duties  under 
the  British  preferential  tariff  must  be  invoiced  and  packed  sepa- 
rately, and  the  certificate  in  such  case  contains  a  statement  that 
they  are  bona  fide  produce  or  manufacture  of  the  country  of 
origin  named  in  the  invoice  and  are  entitled  to  preferential 
treatment. 

The  primary  purpose  of  these  certificates  of  value  is  to  facili- 
tate the  so-called  "non-dumping  clauses"  contained  in  the  tariff 
laws  of  these  British  colonies  who  desire  to  prevent  the  flood- 
ing of  their  markets  with  surplus  foreign  products  at  prices  so 
low  as  to  be  detrimental  to  home  industries.  Imports  into 
Canada  invoiced  at  prices  below  their  fair  market  value  when 
sold  for  consumption  in  the  exporting  country  are  liable  to  a 
special  '"dumping"  import  duty  equal  to  the  difference  between 
the  invoice  price  and  their  fair  value  for  home  consumption. 
This  special  duty  is,  however,  not  to  exceed  15  per  cent,  ad- 
valorem  and  a  tolerance  of  5  per  cent,  is  permitted  in  case  of 
most  products.  Articles  of  a  kind  not  produced  in  Canada, 
moreover,  are  exempted  from  the  special  import  duty. 

Health   Certificates  and  Special  Consular  Documents 

The  requirement  in  the  customs  regulations  of  the  United 
States  with  respect  to  export  inspection  certificates  issued  by 
the  Bureau  of  Animal  Industries,  Department  of  Agriculture, 
in  case  of  exported  live  animals  and  meat  products,  which  were 
referred  to  in  the  preceding  chapter,  are  in  line  with  the  con- 
sular regulations  of  a  number  of  foreign  countries  which  re- 
quire the  presentation  of  such  certificates  when  livestock  and 
meat  products  are  imported.  Certificates  of  health  issued  by 
the  Department  of  Agriculture  or  other  authorities  designated 
in  the  consular  regulations  certifying  that  seeds,  grasses,  plants, 
trees,  etc.,  are  free  from  plant  illness  are  similarly  required  by 
various  foreign  governments. 


170       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Miscellaneous  special  certificates,  labels,  etc.,  are  required  in 
the  consular  regulations  of  some  foreign  countries.  Salvador, 
for  example,  requires  a  flour  quality  certificate  vised  by  the 
pure  food  authority  of  the  Department  of  Agriculture;  Santo 
Domingo,  a  cotton  seed  certificate  in  which  the  Department  of 
Agriculture  certifies  that  the  shipment  is  free  from  plant  diseases 
and  insect  pests ;  and  Panama,  a  certificate  of  analysis  from  a 
recognized  chemist  certifying  that  special  or  patented  food  prod- 
ucts or  beverages  shipped  to  Panama  but  unknown  there  are 
not  injurious  to  health.  Various  foreign  countries  require  the 
use  of  shipping  labels  indicating  the  substances  contained  in 
canned  food  products,  or  the  name  of  the  manufacturer,  place 
of  manufacture,  statements  as  to  mixture  or  imitation,  or  other 
items  prescribed  in  their  consular  regulations.  Before  medicines 
may  be  imported  into  Italy,  application  for  permission  must  be 
made  to  the  Italian  Ministry  of  the  Interior.  When  shipping 
refined  petroleum  to  Uruguay  duplicate  fire-test  certificates,  one 
of  which  is  sworn  to,  must  be  furnished. 

Although  many  foreign  countries  require  no  special  consular 
documents,  sufficient  has  been  stated  to  indicate  that  others  en- 
force regulations  equally  or  even  more  detailed  than  those  applic- 
able to  foreign  products  imported  into  the  United  States.  When 
shipping  to  a  foreign  market  it  is  invariably  necessary  to  ex- 
amine its  consular  regulations,  for  their  requirements  as  to 
shipping  documents  are  not  uniform. 

The  special  regulations  enforced  during  the  war,  particularly 
by  the  belligerent  and  neutral  countries  of  Europe,  were  the 
direct  result  of  war  emergency  conditions  and  are  omitted  from 
this  account  because  of  their  temporary  character. 


CHAPTER  XI 

SHIPPING    DOCUMENTS    USED    IN    OCEAN    FREIGHT    FOR- 
WARDING BUSINESS 


In  the  conduct  of  the  freight  forwarding  business  the  usual 
shipping  documents  described  in  Chapters  VII  to  X  are  re- 
quired, but  in  addition  the  freight-forwarding  concerns,  in  their 
relations  with  the  shippers  for  whom  they  forward  cargoes, 
with  the  steamship  lines,  and  with  their  foreign  agents,  require 
a  number  of   special  documents.     The  shipment  of  air  brake 


St«9e9«9S9e9^ 


Sesese^esess 


Contract  No>....  S2?». 


FREIGHT  CONTRACT. 


NEW  YORK,.    June  12  ^  1919. 


Engaged  freiglit  to ?'.Lt?.?.Eoo  LL_?5ala5d_. 

of ffelt?--8ta5..LJln«>.._. 

for  account  of ^*!Llar?*i?.  A^J  Byi^JLpO-: 


JVgenls  of  the    3/8  C8OTIC 


VM"3^itiSt 


..JZQQ..taaa..JLi.t^iixaiijS.}[aalilntiix.t- 


At'. iii^9^.per.Soo]^m^^ 


Should  S\ 


t  subject  to  corufiti>7n»  ol  Ad  ol  Concreii  «o«> 
■  TOro.tJ  Fib.   IJ,   1191,  and  t«  tinsi  ol  B.Il  ol 

?iii  Sao.r  Hook  br  6  P.  M.  of  expected  MJI/nc 

"coorriVl    7n   f.Ttng  Agcnti   ncKrce    to   ihtt   effect   by   nocn^of 


Sieameri  fe»er*e  »|hl  ol  i^kiog  giain  in  excCM  ol  key  ocl  rCf^tCT 

BrokerageljC 


CALDVZLL  k  C0MPAS7. 

FREIGHT  BROKERS 

8gd.  Jamea  F.  Qnlth. 


Form  53. — Forwarder's  Freight  Contract 

machinery  from  Cleveland,  Ohio,  to  Sheffield,  England,  de- 
scribed in  this  chapter,  may  be  regarded  as  a  typical  ocean  freight 
forwarder's  transaction.  The  shipper's  name,  quantity  of  cargo, 
etc.,  specified  in  the  accompanying  shipping  papers,  are  assumed, 
but  the  forms  are  those  actually  used  by  a  large  New  York 
freight  forwarder. 

The  freight  forwarder  having  been  engaged  by  the  Atlantic 
Air  Brake  Company  to  forward  two  hundred  tons  of  air  brake 

171 


172       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

machinery  to  Sheffield,  England,  the  firststep  taken  by  the  for- 
warder was  to  engage  the  necessary  ocean  freight  to  Liverpool, 
England.    The  freight  contract,  shown  in  Form  53,  which  was 


«fLC*MO«»«  {l'Sl)*<*0^ 


LfSEN    KAItHA 


„  —■ ^a-i^^S^g,-*^"' 

To  The  Axerican  Railway  Association. 

Export  Division, — General  Operating  Committee 
Eastern  Railroads 
J41  Broadway,  New  York 
Centlemen:- 

Railroad  shipping  permit  is   hereby   requested   covering   movement  of 

"^followIng  export  Irelght,  consigned  to    Atlantic  Air. Brake. .Co., «_ ■» 

.««,<..,»B»»^.^?/?_£5J**«il. *. Co.., _60  Broad, Street,,JIe»  Tork^lty-. 

Shipper         A  tlantte  Air  Brake  Co.. 

Point  d  shipment  Cleveland,  Ohio. 

Located  on  tracks  ol  '•'  ^*  ^*  "•  8* 

Commodity"  •**'  »  '■^'e  Materiel, 

QuanUty  SeTen  Carloads, 

Port  ol  Exportation  •**  Tcrk, 

Route  (see  note)  S.T.C.K.a.. 

Foreign  DesUnaUon  liTerpecl, 

For  Steamship  CMRIC 

Loading  Juno  27th,  1919. 

U.  S.  Federal  License  No      BAC-63 

Steamship  Contract  No.  3276 

Yours  truly, 

HOULDER,  WEIR  &  BOYD,  Inc. 

NOTC^-Rtutttil  Sublttlj,  rcvtsttn  Uo«uu  «l  embtrro  e>  oihef  ecodlilflns. 


Form  54. — General  Operating  Committee  Shipping  Authority 

made  out  for  account  of  the  Atlantic  Air  Brake  Company,  may 
be  compared  with  the  ocean  carrier's  freight  contract,  repro- 
duced in  Form  1  of  Chapter  VII.  The  specified  brokerage  of 
1  per  cent,  is  paid  by  the  White  Star  Line  to  the  freight  for- 


DOCUMENTS  IN  OCEAN  FORWARDING  BUSINESS    173 

warder  who  in  this  instance  is  acting  as  a  freight  broker.  The 
freight  contract  is  made  out  In  triphcate,  one  copy  going  to  the 
shipper  or  party  for  whom  the  freight  is  engaged,  and  two  to 
the  steamship  company,  which  retains  one  of  these  copies  and 
after  signing  the  others  returns  it  to  the  freight  forwarder. 

The  shipment  being  made  while  export  shipments  by  rail  were 
still  under  war  control,  the  second  step  taken  by  the  forwarder 
was  to  make  application  to  the  General  Operating  Committee 
of  the  Eastern  Railroads  for  the  so-called  "G.O.C.  autliority" 
to  bring  the  air  brake  material  to  the  seaboard.  This  applica- 
tion was  made  with  the  approval  of  the  steamship  company  with 
whom  freight  was  engaged,  and  it  was  made  on  a  steamship 
company  form,  one  copy  of  which  was  kept  by  the  forwarder 
and  another  by  the  steamship  company,  and  one  copy  of  which 
was  sent  to  the  General  Operating  Committee  for  grant  of 
authority  (see  Form  54).  When  the  G.  O.  C.  authority  was 
received  it  was  sent  to  the  Atlantic  Air  Brake  Company  at 
point  of  origin  as  authority  for  the  railroad  agent  in  Cleveland 
to  accept  the  shipment. 

Shipping  Instructions 

The  entire  two  hundred  tons  or  seven  carloads  of  air  brake 
material  were  not  shipped  from  Cleveland  at  one  time.  As 
commonly  occurs,  one  carload  shipment  of  thirty  cases  was 
made  first,  the  other  carloads  following  later.  The  remaining 
forwarding  documents  herein  reproduced,  therefore,  do  not  list 
the  entire  shipment  of  two  hundred  tons,  but  only  the  thirty 
cases  comprising  the  first  shipment.  When  the  remaining  ship- 
ments were  made  they  were  handled  in  precisely  the  same  way. 

Shortly  after  the  thirty  cases  of  air  brake  compressors,  com- 
prising the  first  part  of  the  shipment  for  which  freight  was 
engaged,  was  started  from  Cleveland,  the  shipper  gave  his  ship- 
ping instructions  to  the  ocean  freight  forwarder  on  the  blank 
reproduced  in  Form  55.  These  instructions  directed  the  for- 
warder to  make  out  the  bill  of  lading  in  the  name  of  the  shipper 
and  to  consign  the  shipment  to  the  order  of  the  shipper.  They 
also  gave  the  name  and  address  of  the  concern  in  Sheffield  which 
is  to  be  notified  of  the  shipment,  but  this  concern  will  not  be 
able  to  obtain  possession  of  the  air  brake  compressors  until  it 


174       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


has  satisfied  the  requirements  of  the  draft  to  which  the  order 
bill  of  lading  will  be  attached.  The  value  of  the  compressors 
for  custom  house  clearance  is  stated  so  that  the  forwarder  will 


l>M  M))  C.  B.  9'ia 


TaUplMR*  WIO  Bnmi 


E>ubU>U<l  ieS7 


ftefer«BC«  H%— 


SAN  FRANCISCO.  CAt. 


CALDWELL  8c  COMPANY 

FOREIGN    FREIGHT    CONTRACTORS 

Custom  Hoas«  Broken.       Marine  Inmraftce. 

50  BROAD  STREET 

Now  York 


FROM  laro-JiliXJi^nii^^' 


■  t6  and  rAOM  aulVant*  or  ths 


DATE— .J"n«-18u.J919_,^ 


W.iUiixJ  «"   J»ne.  17,19X9</.n.u*n«fo«fc.  ontlfK^  in  v«»  cm  1  tt  mlDni  n.  n.  Bill  »/ Uj!f>l '/ "^  JiViSM — 


L  A 

T3089"* 
— CoBp*ny^- 
SHSFFIStD 
Jl/3(5 


es     Air  Br*ksCompre68o  rs 


2302B#'  "ZOIOBii 


each, 


WHiai  PIEASI  fORWASD  TO  DBIINATKW  IN  ACCOROANK  MTM  THE  fOUOWJto  WSTRtCTIONS 

MJte  Bai  ol  Udi.«  inAeMmtol AUMX.tifl-AtP..Jxaltfi.-CQ.. 

Conrip.  «.  Ae  «dero(. AtUnti.5.JUX.-BrAlt«_Ca.,.^._: 

D«»»uon  .- 6»»ef  f ^«ia....I»R........... ,..._._ ..,,  .__^_ ,_,_ 

VJne  for  CiBtoin  Hoim  Otaiuicc  m  $     18,6QQj 

Iniure  iSipmmt  Iw  $    Ifi .  M.P  t md  ehvge  to- 


•       II  Icftthw  (hipped  auc  Bumber  of  iquore  feel. 

...A££SS;i.ic^ilT"^^.er'e?;,. 


Shall  we  cover  Iiuuranco  agaitut  breakage  ? r.«_. 

OcMD  fteigt.1  to  be  ch«g«l  lo AtlanllcAlT  Br«,lf  Co 


Atlftntlo  Air  Broke  Co. 


Through  Freight  and  all  Charge*  to  be  charged  to. 

Frdgb  10  New  York  lo  be  tkueti  to Erapald  t)y  Atlftnti.e-Aix„Jrj>k«_Ci3 

Cuuje  or  Ueliier»ge  to  «ie»i«r  to  be  ehu«ed  to AllAnt4fi_Alr--£.t93f«_C_9_. — 

•  •  V        * 

Regular  forwarding  charge*,  are  for  account   of 

Cutfom   house   and   consular   fees  arc  to  be  charged  to  .      ,    9 ft. ff • 

Amount  of  thipper*  C.  O.  D.  if  any  callected  agaiiut  delivery  $_ Eon«A_ 

M,i]     a   nag  .  piU  oL Lading  to  ihippcn  and    1   CQ>4ftl_at Billj  of  Lading  to  consignee — 

If  ihipment  doei  not  anive  at  leaboaid  hy 3unH    ZSth, 1 adviie  m  by    £ 

Special  lemarlu  ii  aiiy -— . ' 


i  thai  we  can  trace  it. 


laiise  be  refuied  or  relumed,  agree  to  pay  any  and  ali^ 
cd  unleai  insured. 


The  above  is  a  coned  declaration  and  should  the  shiptOCTil  for  f 

charges  incurred.    Qaim  for  loM  oi  damage  lo  packages  or  conlenis 

"This  transaction  is  mo'lc  uo'*ct  rer^esentatioo  by  the  undersigned   that  thoe  is  not  involved  in  connection  therewith  any  trading, 

directly  or  indirectly,  with.  to.  irom,  for.  or  on  account.  bcKalf,  or  benefil  oi  any  enemy  or  ally  of  enemy  of  the  United  States  oi  any 

hansaclion  violative  o(  the  Tradlng-wilh-rhe-Elncmy  Act  of  tha  United  StaWa." 


Youn  Iruly- 


Seod  all  shipments  in  our  care  and  send  tis  Railroad  Bills  of  Lading  showing  deafly  marks  and  numbers  of  packages. 
\Wien  in  carload  lots,  have  "Lighterage  Free"  appear  on  same 


Form  55. — Forw.\ri)Er's  Shipping  Instructions 

be  able  to  correctly  prepare  the  export  declaration.  The  amount 
of  insurance  desired  is  stated  and  the  forwarder  is  instructed 
to  charge  this  to  the  shipper.  The  forwarder  is  also  informed 
that  the  ocean  freight,  the  through  freight  and  all  charges  to 


DOCUMENTS  IN  OCEAN  FORWARDING  BUSINESS    175 

destination,  the  cartage  or  lighterage  to  the  steamer,  the  for- 
warding charges  and  the  custom  house  fees  should  be  charged 
to  the  shipper  and  that  freight  to  New  York  has  been  prepaid 
by  tlie  shipper.  The  shipper  calls  for  three  negotiable  copies  of 
the  bill  of  lading  and  directs  that  two  non-negotiable  copies  be 
sent  to  the  consignee.  The  shipping  instructions  were  given 
June  18th,  and  the  forwarder  is  instructed  to  advise  the  shipper 
by  wire  if  the  shipment  does  not  arrive  at  the  seaboard  by  June 
28th,  so  as  to  enable  the  shipper  to  trace  it  in  time  to  meet  the 
expected  loading  on  the  27th  and  the  expected  sailing  of  the 
steamer  on  the  30th. 

The  shipper  having  shipped  the  air  brake  compressors  to  the 
seaboard  in  the  care  of  the  forwarder,  encloses  the  railroad  bill 
of  lading  with  the  shipping  instructions  so  as  to  enable  the  ocean 
forwarder  to  take  possession  of  the  compressors  when  they 
arrive  at  New  York. 

Arrival  Notice,  Shipping  Permit  and  Customs  Declaration 

The  forwarder  upon  receipt  of  the  shipping  instructions  pro- 
ceeds to  prepare  the  necessary  exporter's  declaration  to  satisfy 
the  requirements  of  the  United  States  Customs  House,  The 
various  copies  of  this  customs  document  are  handled  as  was 
described  in  connection  with  Form  45  of  Chapter  IX,  for  the 
customs  regulations  apply  whether  the  shipper  makes  his  ship- 
ment direct  or  through  an  ocean  freight  forwarder.  The  for- 
warder now  also  obtains  the  usual  shipping  permit  from  the 
steamship  company  on  presentation  of  the  custom's  clearance 
and  evidence  that  freight  has  been  engaged. 

When  the  shipment  of  air  brake  compressors  arrives  at  the 
seaboard  the  forwarder  receives  the  usual  notice  of  arrival  from 
the  railroad,  after  which  upon  presentation  of  the  railroad  bill 
of  lading  the  forwarder  obtains  possession  of  them. 

Lighterage  or  Trucking  Instructions 

Export  cargoes  arriving  at  New  York  are  either  to  be  lightered 
or  trucked.  As  the  shipment  of  air  brake  compressors  in  ques- 
tion was  entitled  to  free  railroad  lighterage  the  forwarder  issued 
lighterage  ^'^stru^ions  ,toJ:he  railroad  company,  using  the  stand- 


176       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


ard  blank  reproduced  in  Form  56.  The  railroad  company  is 
instructed  to  deliver  the  thirty  cases  of  air  brake  material  listed 
by  mark,  number,  description  and  weight  to  the  steamer  Cedric 


raalCIISM.4l>lt 


Metin_ 


CALDWELL   &   COMPANY 

BO    BROAD    STREET 

NEW  YORK  CITY  JUOO    8«t»».    IW' 

D»te 


W/B    4nBM.. 


Bww-YCTk  catrtral  Railroad  Co. 
Produce  Exohajige,   N.  Y.C. 


Please  deliver  the  following  to  steamer CUTIRtC 

Pier 69,    Horth  RlTHrpn  or  before Juna   gRth,    1019. 

Cr  LV  30597. „     60th  St. pro._23*____ arrived    June   23rd. 


MARKS 

NUMBER 

PACKAGES  a  CONTENTS 

WBIOHT 

L                A 

13039. 

COMPAHY, 

#1/30 

Thirty  caeee   (30) 

Sheffield, 

Air  Brake  Material. 

23 .029# 

Signed  dock  receipt  must  be  sent  to  tha  imdcrsigned  immediately  after  delxvery,  cr  g:oA 
may  go  forwaid  at  your  liik  and  expenw, 

Yoiin  truly, 

CALDWfeU.  A  COMPANY 

Per _ 


Form  56. — Forwarder's  Lighterage  Instructions 
at  Pier  59,  North  River,  on  or  before  June  28th.     The  light- 
erage instructions  also  show  the  railroad  car  number,  the  location 
of  the  car,  the  number  of  the  railroad  bill  of  ladin^-,  the  date 
when  the  car  arrived,  the  number  of  the  forwarder's  waybill. 


DOCUMENTS  IN  OCEAN  FORWARDING  BUSINESS    177 

and  a  request  that  the  dock  receipt  which  the  railroad  will  receive 
from  the  steamship  company  be  sent  to  the  forwarder  imme- 
diately after  delivery. 


No.     13206 


TRUCKING  INSTRUCTIONS 


Way  BUL<0684_ 


CALDWELL  &  COMPANY 


New  Ynrl..   June  24,  1919. 


Jf.hn  F.  HlcVey,   (Truckman) 


Deliver  to  S/S. 
On  or  before. 


^■ina    gflt.h.    1919. 


Loading  at  Pier_    ,59,  North  RlTP.r, , 

F,omy»Ma«K     60th  St. c^r    LV  3059? 


Expreis-Rectipl  AlU^ed 

1 

Frdgia        "    .         '* 

StoHge 

Ubot          - 

— 

Caiuse®" 

T~i«l  <^  K 

-J 

Ar^,»<      J""«    23- 


Marki  and  Numbers 


Packftgci  uid  Contents 


L  A 

13069, 

Company, 

Sheffield, 

#1/30 


Thirty  (30)  Caaae  Air  Brak«  laterlsl 


23«029# 


TRUCKMENS  report  and  charges  must  be  made  on  our  blue  slip 
immediately  upori  delivery  of  goods  and  on  the  return  of  this  and 
"all  necessary  receipts.  EMPLOYEES  are  requested  to  see  that 
all  charges  incurred  are  paid. 


Ordered  out  hy  John  MoDermott 


Remarks, . 


Date  Delivered- 
By  Truck 

Psnn  IIL    tS.1B.ll     R  R  A 


Traetou 


Form  57. — Forwarder's  Trucking  Instructions 


Three  copies  of  these  lighterage  instructions  are  made  up. 
One  copy  goes  to  the  railroad  company  for  execution ;  another 
is  attached  to  the  correspondence  and  papers  of  the  forwarder 


178       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

covering  the  shipment ;  and  a  third  copy  is  given  to  the  for- 
warder's transportation  department,  which  is  to  follow  up  the 
shipment  to  see  that  delivery  is  made  in  permit  time. 

Had  it  been  necessary  to  effect  delivery  to  the  steamer  by 
truck,  the  forwarder  v/ould  have  issued  trucking  instructions  to 
a  truckman  on  a  blank  such  as  is  shown  in  Form  57.  The  form 
of  this  paper  is  similar  to  that  of  the  lighterage  instruction  blank 
which  was  actually  used  in  connection  with  the  shipment  of  air 
brake  compressors,  but  differs  in  that  it  contains  a  space  in 
which  the  truckman  would  have  inserted  the  express  and  cart- 
age charge  which  would  have  been  incurred  had  the  delivery 
not  been  effected  by  lighter. 

Trucking  instructions  are  also  made  up  in  triplicate.  One 
copy  is  attached  to  the  papers  and  correspondence  covering 
the  shipment,  and  two  copies  are  given  to  the  truckman,  who 
retains  one  copy  and  returns  the  other  to  the  forwarder  with 
his  charges  noted  thereon  after  delivery  has  been  made. 

Bills  of  Lading 

When  delivery  has  been  effected  to  the  outgoing  steamer  either 
by  lighter  or  by  truck  the  railroad  company  or  the  truckman,  as 
the  case  may  be,  obtains  from  the  receiving  clerk  of  the  steamer 
a  dock  receipt  such  as  was  reproduced  in  Form  5  of  Chapter 
VII.  The  forwarder  is  then  in  a  position  to  prepare  the  ocean 
bills  of  lading,  which  are  returned  to  tlie  steamship  company 
for  signature.  The  number  of  copies  to  be  prepared  and  their 
contents  has  been  described  in  Chapter  VII.  A  case  of  a  large 
shipment  which  does  not  need  to  be  combined  with  others  by  the 
forwarder  in  order  to  overcome  the  effect  of  the  minimum  bills 
of  lading  issued  by  some  steamship  lines,  and  which  is  destined 
to  a  port  reached  by  the  line,  the  ocean  bill  of  lading  obtained 
from  the  steamship  company  may  be  sent  to  the  shipper.  In 
many  instances,  however,  the  forwarder  issues  his  own  for- 
warder's bill  of  lading  to  the  shipper. 

This  was  done  in  case  of  the  shipment  of  air  brake  material 
which  was  destined  to  Sheffield,  an  inland  point  not  reached  by 
the  steamship  line.  The  forwarder's  bill  of  lading  reproduced 
in  Form  58a,  it  will  be  noted,  carries  the  shipment  through 
Liverpool  to  Sheffield.     In  accordance  with  the  exporter's  ship- 


DOCUMENTS  IN  OCEAN  FORWARDING  BUSINESS     179 

ping  instructions  it  is  made  to  order  of  the  shipper,  the  for- 
warder affirming  to  three  negotiable  copies,  "one  of  which  be- 
ing accompHshed  the  others  to  stand  void."     It  names  the  con- 


EXPORT  BILL  OF  LADING 

ESTABLISHED   1857 


ANO  CUSTOM  M0USf^l»OK8S5.  MARfNE  INSURANCE 
SiESBcLpSfli    so  BROAD  STREET.  NEW  YORK         "iSSiSB^ 

tU  Sm.  ia4w  An*M 

o=T«o.f —  '='"^''  .iiutewra 


RECEIVED. 


LAS  PALMAS-USVONTCNERirrC 


ibject  to  tbe  ClAXsiGcmtioiu  aad  Tcnfft  in  effect  oo  the  date  of  Une  of  thl*  OriglDtl 

ct  New  Vort,  N.  Y.,  from ATUU7TIC    AIR    BRAKE   CO. 

properly  descnbe-l  below, 


SEN  MAISHA 
40584 


■ppttreot  good  order, 
ligoed  onil  d^sfaoed  aod  to  be  CArried  M  itid^lcnted  below. 
To  l/e  delivered  to  the  good  Steemer C£DRIp 


(scheduled  to  ■»;!  Jvng    50.    1919.        ^„^ 


pt  u  noted  (coBteats  And  coodiiloiu  ol  coatcota  of  pftdugcs  Dokoonn),  lOArkcd. 

boQod  fa.       LIVERPOOL. 


„]  or  the  oezt  •TAflaUe  StcAmer  (or  Uiir|  Asd  to  bt 


delivered  in  like  order  end  coodlii 
liberty  to  call  at  any  port  or  pnrts 
cotreignee's  aasigriB,  or  to  another 


SKETTIFI.n      -EKr.T.ATin. 


r  thereto  aa  tteamer  may  aafely  get,  with 


aatomary 

le  to  deati  .... 

of  the  property,  of  the  freight  tbeieon,  at  Uic  agreed  rite,  Utited  ijUte*  gold  currcncj,  with  all  other  etiaigrt  asd  arcnee,  withcot  abj  AUoHttw* 
of  crcdil'  or  diaccoct. 

CONSIGNED  vtno , 0        R         D     -   E        R 


^KTICl^ES: 


THIRTY   (30)  BOXES  AIR  BRAKE  MATERIAL. 


f- 


K^miffn^ 


L  A 

13039, 
COMPAITY, 

SKEFFIELD , 


#1/30 


83  .029^ 


rr^' 


t- 


APPLY  >ott  DELIVER?  to        THOMf SOW .    KlhG^  CO..    35  LBADEH^^y  ST.    LI\'£RPOOL,    EPG^ 
d .t*. -a ^J^TiFY     LAFGSTAIT    .    AlREY  &  CO..    S^^^fe-.L  ST,    SKErF;ELD„    ERG> 


CALDWELL  ft  CO    ouacd 

w*-n  ind  Aroaffi  whcM    600)  6t^'7«r  wJI   b«  nut* 

CHARGES    (  yP-EPAlD     ) 


W^ 


-.£aiFTTIF.LP,Ri|a. tf 


,-f\''^ 


srJT 


MARINE  INSURANCF,    &   WAR  RISK  ARRAMGED  THROUOlp'QfiDWii: 


L     ft  COH  PAKY. 


Aii  Risks  of  fira  or  Flood  wliil»  Sasds  are  on  ihe  Deck,  to  b»  Imni^j^ilftlilpptrt. 


ov«r  ell  or  ■ny  portion  of  said'  roate  to  desiiaatlno.  aod  u  to  mtch 

-._.„  ._  t»  ptrionned  hereunder  shall  bo  subject  to  all  the  conditions. 

wbether  prioled  or  written,  herein  conulned,  inelndinii  cm»j;tiei>»  00  b«a  hereot.  uid  which  ire  agreed  U  hr  the  shipper  aod  accepted  (or  UmaeU 

It  is  stipulated  that  an?  claim,  demand  or  question,  arising  out  of  this  shipment  and  Bill  ct  lAdlof  ihall  l>e  determined  according  to  the  law  ol 

AND  FINALLV.  in  aoceptiiiK  this  Bill  of  Lading,  the  Shipper.  Owilar  and  Consignee 0*  the  goods  and  the  Holder  of  the  Bfll  of  LadlngagrM 
to  fce  twuod  by  all  its  stipulations,  exceptjoDS  and  condjuona  whether  written  <jr  printed  aa  fully  «a  If  they  wsr«  all  signed  by  such  Shipper,  Owocb 

Consignee  or  Holder.  

IN  WITNESS  WHEREOF.  CALOWELL  a  CO.,  hath  affinaaJ.toT.IjRiiB BlOa  ft  lading,  an   of   (bis  tenot  and   data,  one  of  wfclok 

being  accomplisbed  to  othera  to  atand  void.  CALDWELL  6c  CO. 


roiiK.  N.  Y„. 


Un> 


«^ 


Form  58A. — Forwarder's  Bill  of  Lading 


signee  merely  so  that  the  agent  of  the  forwarder  may  notify 
him;  and  it  also  contains  the  name  of  the  agent  at  Liverpool  to 
whom  application  should  be  made  for  delivery.  It  is,  however, 
an  order  bill  of  lading  which  the  exporter  will  attach  to  a  draft 


180       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

in  order  to  obtain  payment  for  his  air  brake  compressors,  and 
which  needs  to  be  presented  with  proper  endorsement  before 
the  forwarder's  agent  will  deliver  them  to  the  consignee. 


ENDORSEMENTS. 


CONDITIONS 


IT  n  WCTTUALtT  A<Jft7tO  Ad  th«  sM^  ikaK  te^itfefrt*  l»  tin  wM%  ot  wlthMrt  plton;  *t*6  to  ilnTite  far  tmaomt  M  Mvfftf  tif*  drttvptmx  Att  (M  t>rft«« 
•feitl  ht-wt  -libfny  v>  cnMt  |oM*  If  IJcfcur*  to  Md  (rota  (h«  *tnf  ■!  tba  nik  o(  (h  e  ownen  of  ib«  r>«<)«;  *(ul  tf>  «Mc  1^  iftip  •fcx  11  p«1  into  ■  part  of  rcfnfc,  or  t»  pr«- 
»<nlfd  from  any  t»oie  from  pf«efT<Iln|lii  UiQ  otdinanr -coorx  of  htr  vnyasc  **  trinih.p  th«  food*  In  theif  dollo.lion  by  ftfl*  otlicr  •tcMwliip;  Uu  Ul«  U/rWf  4)tiU  n« 
W  I'rtk  lof  Iml  or  dlnUct  McuiafiMt  by  hre  frOtn  anf  «ai»r  Of  «rhc«xio«*cr  oervrinii:  by  barrmtr*  of  tht  mulrr  or  eiem;  hf  robb«ri  on  bnd  or  (ri;  br  trrrit  and  r*-' 
•tmni  o(  pHrcM.  rulers  ot  lKOp'<'-  ''"'••  "'nlMi  or  itatiM(t  of  labor;  by  ciplBilon,  burMing  of  bolkra.  brrakase  o(  thifu.  or  tar  latenl  defect  in  hall,  oijehintrr  or 
■npurteoancf*.  miif.»jaiit«,  trror  In  iBdfinCTit  anjr  att,  neflleel,  or  detaull  «b«ti*>tYer  «(  pilol*,  tnuKri  or  crtw  In  tfie  managewnl  or  tiavigatton  of  TT>e  ahip,  coilUlod*  and 
all  and  tvtry  other  danfet  and  acckdcnl*  of  (Ic  teaa,  rWcn  and  canali  a»d  of  naviRiiion  of  ■balioevej'  nttur«  br  kind  ruccptcd.  «f  un*<awL>r1h(fivai  of  ih*  thlc  r«cn 
nitlirs  at  time  ei  ^biptncnl  or  itiling  on  Ibe  *Oya(e.  protldrd  Ike  owner)  Jtavr  eierciiM  d»«  dllifrnce  le  make  the  vejicl  *etf>t>r\hj,  by  heaUn|.  decay,  patrefaclion,  ruit. 
•wtat,  (hafatr,  »ernim.  mildrw.  rain,  »pfay.  chanfe  ol  cbaract<r.  driinaK^.  UaVaj*.  breakace.  or  atty  lou  or  dBaikft  atninj  from  ih«  nnur*  of  the  fo«4a  or  the  iaiuffl. 
eJMncy  ft  packafttj  ror  lor  land  daini(e  or  dinacc  by  coaJ  du*t  or  for  rcaaonabk  ocar   ajid   tear,   or   ky   contaci   with   ot^cr   cargo   or   »ca«aicr,   nor   (or   Uia  obliioaiiOA, 

lonealion  of  her  voys|t«;  ard  thai  ihe  earner  tball  not  be  concluded  ai  to  crirrccineM  oMba.  ■(ajc«ienti  herein,  at  weight,  mvaiut*.  quaotityt  quatit  ■,  conltnti  and  TlTut, 
Fin  1.  «xptni«  and  lonei  I7  ddenllon  ol  ibip  or  carco  cautrd  by  irtarrett  mAikinf.  of  by  iBoomplete  Of  incnrtect  dcJcrHMion  .oi  centanU  W  ««i|ni  or  tny  gtbar  p*f« 
•fculBri   required  by  aulhcriiiea  a(   port*   of  dl»charre   wpoti  eiiber  the  package  or   Dill   of  Lading   ihall  be  borne  by  the  owner  of  the  cooda. 

IT  IS  AU^O  MUTUALLY  AGREED  ibM  ihia  •£^ipT»ui  ii  l»Wect  (»  all  A.  lermt  and  -proriiion.  of  and  all  the  e^mpdofii  from  Kabilitr  eoiiMtn«J  la  itt  Art  of 
CongXM    ol    Ihc    UnNpd    Slalta.    ayyoreJ'oft    the    tjib    day    of    February.    1I91.    <a»d  rntJtled  an   Act  reUtin^  lo  Navnalion  ol   V^e^^el^^  eft  J  ^      ■ 


I      IT  19   ALSO   MUTUALLY  AGREED  that  tti« 
Srction   4:81    ot   the    Reviam   Stituicj   ot  tbe   United 

rhertof   it   ()«an   mj  .W»   i*  inierrd   I*   the   bill   of 

1.     AL50.  (hat  5*ipp«w  iWI  b*  liable  (or  any  le«» 
»r   dim»fe  te   Ship  o»   Cargo  caused   bv   Inflanmable 

diirloiare    ol    IbelirBsnirt,    vWiibrr    inch    SbipfXf    he 


■    Afer 


corrc«'   ard'"in»atocVenl'"inVrfcIn(i."nowberiJf    or    tA- 

noTi-emtntliancet    with    Cuilffhi    HenoirenwftU    •III    bt 

'  a"*AtSO^  i"H»t  in  caae  the  Ship  ihall  bt  pfe»«ile4 
fmm  ftMh.ng  her  de.llnnlwi  by  Quara-tiOc,  the 
CatHw  may  ducha'tc  <he  «ood»  Into  an/  D'jwt 
or    UiareflfK   •od   »ort   dlicharrt   »hall   be   d-«iitd   a 

P^*e»'tbtfHry  iMvrrcd  wt  ilM  gowU  aball  b«  •  titn 

M-  Al^Oi  thmW  Ship  ina»  «o*mVi*(^A»<bar!fe' 
tminedMtely  «n  arrival  and  dwh-rne  contin>i(.qf Pr. 
(hi  Collrctof  of  Ihc  Pon  being  hereby  authonied  (o 
gr»nl  a  general  order  for  dncharae  immediatefy  n* 
arrivar.  ir.A  H  the  fcoiit  be  no?  lahrn  from  the 
•h.p  by  Iht  ConwiBC  d'/fClly  Ihey  eom«  to  hand  in 
ducT>aTg{>^  the  thip  the  Male'  ot  Ship  •  Ajftit  to  he 
at  iiberiy  to  enter  and  Ufd  lh(  tooda.  or  put  ikem 
Into  cttat   or   tu>TK  U  ««iver'a  tiw- and   eipnwr.    and 

ut^lll    the    HJinvni   «f    at)   aoat*   acd   charge*.  «»    in- 

*itSt4ihtr-kt*(H  tfri*  VWM  «fec  jtood*  W<  W  ttf« 
■nr««««Uuii«|».w  dcUy  ift  lkc:|««da  and  itn  ovnv 

ATTENTION 

'  '"Vn,   oeoeA   nf  ferwnt  A\mXft  «t1  of  vitriol,  u 


.     ALSO,  that   full  freight  li  na/able  en   damaged 
«bai>unJ^  goodi;    but    no    freight    11   i.ur    on    any   in- 

«t  'r"  d^Hni^ihr'tC    '**'"'*    ^^    "*"    ''*""P'""' 

,  "'a LSO.'thal  .('onVlS^  of  the  irood*  at  de*(ina. 

t^^r  *aM 'bright   and^harget,   cI'^MrH   »   Coi^Mny 


fl      AL50.  It  h  diftirKiry  itnd;ntood  'hot  Ca'dwt<t 

are    in    no    way    reeponatKIc    for    (^e   r^tl    ,ird    delaulti 
«t   tbje  K*rr\tTt  la   vhom    Ikr^   tntmat   the   good^. 

0      ALr.O,    that    merrhandl.-    cn    wHarl    awaitlnit 
•blr«e«l    or    deli»(>y    be  *tjhifp<r'i    r..W    d    W»  .i^ 

.      10       Al.Sti.  (hit    tbi.  bill   of  lading.   >ftl'-   endonw^. 
I>e   iivrn  up  10  the  Ac'r.t  u(  Caidwtit   6  Coopaoy  m 

".',?0,    ih»;    iV;    Frfirtt,  prepaid-  win    «H    tn. 
t^iuital.    gooda    Ic-it    or    nM    14»C  ^      ', 

t*      AC^O.  fhat'fretjibi  rayabte  «n  vrlgtit  (a  to  be 
p«.d   on   B-eit   wr.dhi   lanjlcd  Vrbm  Oc^an    S<e«D>Wp,' 


;;..';/ r 


lorward   them   by 


Carrier   U   ny   I 
T6aa^Mion  of  ftny  a 


14.  ALSO,  that  ibe  ProperlT  Covered  br  IKU  bllt 
of  t^in'g  ii  lubject  to  ^1  tne  conditiOnk  tiprcsMd  in 
the    regular    (orma   of    bill*   of   lading   In    »•«   by   lb« 

espreilly    provided    fo^    by    the    cliui'i    hef»:n. 

ij,  AT.SO.  Ut»t  gooda  May  l«  Li  ed  or  eoooefed. 
If   t)ec4H^7>   4t  txptnK    «i   owDtra— <«U   to    leHow 


«4.<'Cdedi'-wM«h«i«y  be  re^nlred-to  U  f< 
»T  a-II.  SteamerNr  other-iMT  to  l..e!r  d-i 
from   tba   Ship'a   Port   of    0>*cha/T«.   thalL  be 


Aip  anfl  nwncfv  and  Caidwc-i;  S  CompMny  m'dfr  Ihii 
liTl    of    lading-  to   ccaac    •pon    dcli*crf   ol    (be   ffod<l%' 

17.     Fretgtit   a>4if  eKarv«i  'payable   br  COnilgRCQ    to 
>«  paid   at   niTicnt   rate   of  cKclun^. 

of  eloddg  erf  Mrt  ef  dei'tnt' 

or  cnrrrng  (0  dctUnatloa   «i|l 


tlon  by  ler,  right 
rd  Kcei«Vle-  po 
diacha'img  with 
be  at  rlak  and  ex 

f*.' ■VARIPreHISRS:   Cald-ell    ft   Comfian^   wnt 
c    InivrUM   H  9nd<ruJ(ca  <^ 


rter  or  trm  er^pl*! 


be   re«i 

tKetn   for 

ANfl   FINAtl.V.   IN   Mceprin 
th-  holder  of  the  bDI  of  ladiVg. 

all     aigned    hf    awcb    tfrippcr. 
'holder. 

g  Hgent*.  aaeh  cariHer  C 


[   tb«   r^oda, 


frooi  tuch  Mrrl«f 

jr  SHIPPERS  IS  CALLED  TO  THE  ACT  OP  CONGRESS  OF  iS|i. 

niadrttl  ttine.   Inflaatwable  aU^cTie*,  .»f  |unpni>rder  hi  •  ahip  or  venae)   uWftg  cario   (or  dt< 
■riiiina  c'preitinfl  the  eha'tcit'  diikKb  tocrdiandiaa  lo  the  naattr,  msU*  oActf  ar  pcrMd 


anj 


nploytd. 

perMna  60   ("reltbt. 
vUaiffi  ei  lb*  Udlflf- 


Form  s8b. — Back  of  Forwarder's  Bill  of  Lading 

An  examination  of  the  conditions  stated  in  Form  58b  shows 
that  the  ocean  forwarder's  bill  of  lading  embodies  the  usual 
clauses  defining  the  liability  of  the  steamship  company,  and  also 
that  the  property  covered  by  it  is  "subject  to  all  the  conditions 


DOCUMENTS  IN  OCEAN  FORWARDING  BUSINESS    181 

expressed  in  the  regular  forms  of  bills  of  lading  in  use  by  the 
steamship  companies  at  time  of  shipment,  and  to  all  local  rules 
and  regulations  at  port  of  destination  not  expressly  provided 
for  by  the  clauses  herein."  Liability  for  loss  or  damage  due  to 
the  acts  of  the  steamship  company  continue  to  be  subject  to  the 
terms  of  the  ocean  carrier's  bill  of  lading  and  such  federal 
statutes  as  are  applicable,  and  remains  vested  in  the  ocean  car- 
rier. The  forwarder's  bill  of  lading  provides  that  "it  is  dis- 
tinctly understood  that  Caldwell  and  Company  (the  forwarders) 
are  only  the  agents  of  shippers  and  are  in  no  way  responsible 
for  the  acts  and  defaults  of  the  carriers  to  whom  they  entrust 
the  goods."  Many,  although  not  all  banks,  however,  accept  the 
bills  of  lading  issued  by  reputable  ocean  freight  forwarders  to 
attach  to  drafts.  Should  loss  or  damage  occur  for  which  the 
ocean  carrier  is  legally  responsible,  the  ocean  bills  of  lading 
issued  by  the  ocean  carrier  to  the  forwarder  become  available. 
The  ocean  forwarder  under  the  conditions  of  his  bill  of  lad- 
ing has  a  lien  on  the  cargo  for  "all  freights,  primages  and 
charges,  and  also  for  all  fines  or  damages  which  the  ship  or 
cargo  may  incur  or  suffer  by  reason  of  incorrect  or  insufficient 
marking,  numbering  or  addressing  of  packages  or  description 
of  their  contents.  Furthermore,  all  charges  or  expenses  incurred 
through  non-compliance  with  requirements  will  be  charged  to 
consignee."  It  is  also  provided  that  "if  on  a  sale  of  the  goods 
at  destination  for  freight  and  charges,  the  proceeds  fail  to  cover 
said  freight  charges,  (the  forwarder)  shall  be  entitled  to  re- 
cover the  difference  from  the  shipper." 

Forwarder's  Waybills 

The  ocean  freight  forwarder  having  attended  to  the  forward- 
ing of  the  shipment  of  air  brake  material  through  the  port  of 
export  now  prepares  his  waybill  (Form  59),  which  contains 
instructions  to  the  Liverpool  firm  acting  as  the  forwarder's 
agent,  and  which  also  serves  as  the  basis  of  his  accounts  in  so 
far  as  charges  have  not  been  prepaid  by  the  shipper  or  charged 
to  him.  It  will  be  noted  that  transportation  and  other  charges 
incurred  in  connection  with  the  shipment  of  air  brake  material 
in  question  were  prepaid  to  the  warehouse  at  Sheffield,  the  final 
destination,  so  that  the  foreign  agent  was  not  called  upon  to 


182       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

collect   anything    from   the    consignee    for   the    account    of   the 
ocean  freight  forwarder. 

The  forwarder's  waybill,  besides  containing  instructions  as  to 
the  collection  of  charges,  also  states  the  name  of  the  steamer 
and  her  sailing  date ;  the  marks,  numbers,  description,  value  and 
weight  of  the  cargo ;  to  whom  it  is  billed ;  who  shall  be  notified ; 
the  name  of  the  shipper;  and  a  reminder  that  when  consigned 
"to  order,"  the  cargo  should  be  delivered  only  on  presentation 
of  the   forwarder's   through  bill  of  lading  properly  endorsed. 


Form  59. — Forwarder's  Waybill 

The  waybill  is  issued  in  triplicate,  one  copy  being  kept  by  the 
forwarder  as  a  record  of  the  transaction,  and  two  being  sent  to 
the  foreign  agent  of  the  forwarder  at  the  port  of  entry.  Of 
these  two  copies,  one  is  forwarded  in  a  mail  accompanying  the 
shipment,  and  a  second  is  sent  in  a  later  mail.  The  foreign 
agent  is  requested  to  specify  his  charges  in  a  space  provided 
for  that  purpose  in  the  waybill,  and  to  return  it  to  the  forwarder. 


Forwarder's  Expense  Bill 

The  transaction  between  the  forwarder  and  shipper  or  party 
for  whom  the  air  brake  material  was  forwarded  was  closed 
on  the  basis  of  the  forwarder's  expense  bill.     As  is  shown  in 


DOCUMENTS  IN  OCEAN  FORWARDING  BUSINESS    183 


Form  60,  the  shipper  who  agreed  to  pay  the  shipping  charges 
through  to  destination  was  called  upon  to  remit  $365.46.  This 
included  the  freight  charge  which  carried  the  shipment  from 
New  York  to  Sheffield,  the  insurance  on  a  value  of  $16,500  which 
the  forwarder  was  requested  to  obtain,  the  forwarding  charge, 
a  charge  for  issuing  the  bill  of  lading,  and  a  charge  for  issuing 
the  customs  clearance. 


■"■■'" 

TtumoNI   TO   anOAO 

N.W  Yds Juna_2 

^                Atlantic  Air  Brake  Co., 

CloTeland.  Ohio.. 

s.  a?i?,.         191   ., 

""•ffiteo*—           ' 

Dr. 

WMr 

w.,  aai  N..  «nFifl4 

FMSADtLPKii 

To  CALDWELL  &  COMPANY, 

cja^"**^"'  31.                                              Marine  Insurance 
'^■^.^  "                                     SO  BROAD  STREET,  NEW  YORK 

St*TTlX 

Kindly  reinK  in  Now  York  Ezchin;e  oi-  lis  eqaivalem  whea  pwrin|  l)t«  lecauni,  u  B»«k«  thtffa  coliKtlon  U*s  on  owt-of-tevit  cAecki^              [ 

MARK    & 

lo  chargts)     ,l±xxiJD 
oti!h.pr-cntt'*'rS/5       CEDBIC,    June   30,    1919. 

CONSIGNEE 

Inland  Fifigtit, 

l.innQ 

Transfer  Charges, 

Company  , 

^i^kS^biaige.,  Mew  York  to  Sheffield. 

23.0291?  ©  $1.50 

299. 

56 

#1/30 . 

Insurance  $16,600.   ©  3/8   of    1» 

61. 

■S3 

Marling 

Inspection 

Sloiage 

ConsJa.  Fees  $                     Ugallzaaon  t 

Forwarding  Charge  6<  Services 

2. 

01 

Issuing  Bills  of  Lading 

1  . 

^ 

Issuing  Customs  Clearance 

5( 

Commission 

Brokerage 

Shippers'  C.  O.  D- 

Colltttion.  Discount  Fees 

$365  ■ 

i 

Telegrams.  Cables  &  Postage 

— ■ — ■ : rr : ~ 



Form  6o. — Forwarder's  Expense  Bnx 

The  space  calling  for  a  statement  of  inland  freight  from 
Cleveland  to  New  York  remained  blank  in  this  transaction  be- 
cause it  was  prepaid  by  the  shipper.  No  transfer  charges  were 
billed  to  the  shipper  because  the  shipment  was  lightered  by  the 
railroad  without  special  charge.  No  charges  for  marking,  stor- 
age, inspection,  shipper's  C.  O.  D.,  collection  discount,  telegrams, 
cables  and  postage  were  billed  because  expenses  of  this  nature 
did  not  need  to  be  incurred  in  connection  with  this  shipment. 
No  consular  fees  were  incurred  because  none  are  required  under 
the  consular  regulations  of  England.    The  space  for  commissions 


184       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

remained  blank  as  no  special  commission  was  charged  for  for- 
warding this  consignment,  and  no  brokerage  was  charged  because 
when  this  shipment  was  made  the  steamship  companies,  some  of 
whom  had  discontinued  the  payment  of  brokerage  to  ocean 
freight  forwarders  during  the  war,  were  again  paying  brokerage. 
The  forwarder's  expense  bill  serves  as  an  itemized  bill  to  the 
shipper  and  as  the  basis  for  settlement  with  him.  It  also  serves 
as  a  basis  for  the  forwarder's  accounts  in  so  far  as  charges  and 
costs  are  charged  to  the  shipper  instead  of  the  consignee.  The 
waybill  and  expense  bill  enable  the  forwarder's  accounting  staff 
to  keep  account  of  his  freight  forwarding  transactions. 


V 

f- 


CHAPTER  XII 
TIME  CHARTER  PARTIES 

When  the  owner  of  a  tramp  vessel  through  a  ship  broker, 
operating  manager  or  directly  through  his  own  immediate  or- 
ganization charters  a  vessel  to  a  shipper,  steamship  line  or  ves- 
sel-operating concern  of  any  kind,  the  underlying  document 
known  as  a  charter  or  ''Charter  party"  is  executed.  Shippers 
need  to  understand  the  nature  of  this  document  when  they  utilize 
the  ocean  tramp  service;  and  regular  steamship  lines,  industrial 
steamship  concerns,  and  other  steamship  operators  when  they 
supplement  their  own  vessels  with  additional  vessels  not  owned 
by  them.  The  owners  of  tramp  vessels  are  vitally  concerned 
with  charter  parties  because  their  principal  business  is  to  charter 
their  vessels,  and  their  profits  depend  upon  the  terms  contained 
in  these  documents.  Freight  forwarders,  too,  are  concerned 
with  charter  parties  in  so  far  as  the  cargoes  which  they  handle 
are  shipped  in  vessels  chartered  by  them  or  by  the  shippers 
whom  they  represent.  Ship  brokers  require  the  knowledge  of 
experts  with  respect  to  charters,  as  it  is  through  brokers  that 
most  charter  arrangements  are  made. 

Two  general  types  of  charters  are  used  in  ocean  shipping  as 
conducted  by  private  ship  owners  in  their  customary  dealings 
with  each  other  or  with  steamship  operators,  shippers,  for- 
warders and  brokers :  time  charters  extending  throughout  an 
agreed  period  of  time  or  indicated  number  of  voyages,  and  trip 
charters  covering  a  single  voyage.  Within  each  group  or  general 
type  there  are  many  variations,  although  the  efforts  of  vessel 
owners'  associations,  maritime  exchanges,  grain  exchanges  and 
other  trade  associations,  and  the  customs  gradually  developing 
at  groups  of  ports,  in  defined  sections  of  the  commercial  world 
or  in  particular  trades  have  instilled  a  degree  of  uniformity  as 
to  their  principal  conditions.  Owners  and  charterers  may,  how- 
ever, come  to  special  agreement  as  to  compensation,  the  risks, 
expenses  or  duties  assumed  or  performed  by  each,  and  in  re- 

185 


186       OCEAN  STEAMSHIP  TRAEEIC  MANAGEMENT 

gard  to  other  conditions  inserted  into  the  charter  party  signed 
by  them  or  their  agents. 


Form  61a.— Time  Charter  Party  (Pre-war  Conditions) 

TIME  CHARTERS 

BOWRING  &  CO. 

17  BATTERY  PLACE 

NEW  YORK 

GOVERNMENT  FORM 

THIS  CHARTER  PARTY,  made  and  concluded  upon  In  the  City  of  New  York,  the  S8th  day  of 

May.  lOlS,  between  Mr.turs tfe  Co.,  London,  Agents  for  Owners 

of  the  good  NoTweoian  Screw  Steamship  now  building  and  to  be  named 

of (tons  net  register,  having  engines  of]   [nominal  horse  power 

provided  with  proper  certlticate  for  hull  and  machinery.)  and  classed,  1-A-l  at  Nor.  Veritas  of  .about 

according  to  plan  [about] cubic  feet  capacity  and  9000  tons  dead  weight  or 

thereabouts  on  Lloyd's  Summer  freeboard  inclusive  of  bunkers,  which  are  of  the  capacity  of  about 

tons  of  coal,  and  stores  now  expected  to  be  ready  in  the  Tync,  .September  or   October. 

19111  and  Messrs S.  S.  Line,  Charterers  of  the  City  of 

New  York. 

WITNESSETH,  1.     Th!it  the  said  owners  agree  to  let,  and  the  said  Charterers  agree  to  hire  the 

said  steamship  from  the  time  of  delivery,  for   years. 

Steamer  to  be  placed  at  the  disposal  of  the  Charterers,  at  a  port  in  Tyne.  in  such  docic  or  at  such  wharf 
or  place  (where  slie  may  aiwaj-s  safely  lie  afloat  at  all  times  of  tide)  as  the  Charterers  may  direct  and 
being  on  her  delivery  ready  to  receive  cargo,  and  tight,  staunch,  strong  and  In  every  way  fltted  for 
the  service,  havin.7  water  ballast,  steam  winches  and  donkey  boiler  with  capacity  to  run  ali  the  steam 
winches  at  one  and  the  same  time,  and  with  full  complement  of  ofDeers,  seamen,  engineers,  and 
firemen  for  a  ves,sel  of  her  tonnage  and  to  be  so  maintained  during  the  continuation  of  this  Charter 
Party,  to  be  employed  in  carrying  lav^ful  merchandise,  including  petroleum  or  its  products,  in  cases 
and  passengers  so  far  as  accommodations  will  allow  (but  any  expense  necessary  to  fit  the  steamer 
to  comply  with  United  States  Pa-ssengcr  Inspection  laws  to  be  l)-)rnc  by  the  Cb.nrterers)  In  such  lawful 
trades  between  safe  port  and/or  ports  in  British  North  America  and/or  United  States  of  America 
and/or  West  Indies  and/or  Central  America  and/or  Caribbean  Sea  and/or  Gulf  of  Mexico  .and/or 
America  and/or  Europe  and 'or  Africa  and/or  Asia  [and /or  Australia]  excluding  River  St. 
Lawrence  from  October  1,  to  May  1,  (White  Sea,  Black  Sea,  and  the  Baltic  out  of  season)  Magdalena 
River  and  ail  unsafe  ports,  czcli/ding  Si.  Lawrence  Coal  trade,  excluding  regular  ore  trade,  excluaing  Aus- 
tralia, excluding  V.'cst  Coast  North  America  Coasting  trade,  as  the  Charterers  or  their  Agents  shall 
direct  on  the  following  conditions: 

2.  That  the  ov/ner  sliall  iirovide  and  pay  for  all  provisions,  wages  and  Consular  shlpolng  and 
discharging  fees  of  the  Captain,  Offlcers,  Engineers,  Firemen  and  Crew;  shall  pay  for  the  insurance 
of  the  ves,sel.  also  for  all  the  cabin,  deck,  engine-room  and  other  necessary  stores,  and  maintain  her 
In  a  th^>roughly  cfScient  state  in  hull  and  machinery  for  and  during  the  service. 

3.  That  the  Charterers  shall  provide  and  pay  for  all  the  Coals,  Fuels,  Port  C'h.irges,  Pilotages. 
Agencies,  Commis.sons.  Consular  Charges  (except  those  pertaining  to  the  captain,  officers  or  crew), 
and  all  other  Charges  whatsoever,  except  those  before  stated.  Charterers  are  to  provide  necessary 
dunnage  and  shifting  boards,  but  owner  to  allow  them  the  use  of  the  dunnage  and  shitting  boards 
already  aboard  steamer. 

4.  That  tile  Charterers  shall  accept  and  pay  at  once  on  delivery  of  steamer  for  all  Coal  In  the 
steamers  Eunl;ers  on  delivery  and  the  Owners  shall,  on  expiration  of  the  Charter  Party,  pay  for  all 
Coal  left  in  the  Bunkers,  each  at  the  current  market  prices  at  the  respective  Ports  where  she  is 
delivered  to  them. 

5.  That  the  Charterers  shall  pay  for  the  use  and  hire  of  the  said  vessel  fourteen  hundred  and  eighty 
pounds  {£HHO)  British  Sterling  per  Calendar  Mouth,  commencing  on  and  from  the  day  of  her  delivery, 
as  aforesaid,  and  at  and  after  the  same  rate  for  any  part  of  a  month:  hire  to  continue  until  her  redelivery 
in  like  good  order  and  condition  to  the  Owners  (unless  lost)  at  a  port  in  U .  K.  or  on  the  Continent 
between  Bordeaux  and  Hamburg  (Rouen  excluded)  at  Chartercs'  option. 

6.  That  should  the  steamer  be  on  her  voyage  towards  the  port  of  return  delivery  at  the  time  a 
payment  of  hire  becomes  due,  said  payment  shall  be  made  for  suoli  a  length  of  time  as  the  owners 
or  their  agents,  and  Charterers,  or  their  agents  may  agree  upim,  as  the  estimated  time  necessary  to 
complete  the  voyage,  and  when  the  steamer  is  delivered  to  owner's  agents  any  difference  shall  be 
refunded  by  steamer  or  paid  by  Charterers,  as  tlie  case  may  require. 

7.  Payment  of  said  hire  to  be  made  in  cash  at  the  current  short  sight  rate  of  Exchange,  or  In 

approved  Banker's  sight  bills  on   London,   at  owner's  option    monthly  In 

advance,  or  as  agreed,  and  in  default  of  such  iiayment  the  Owners  shall  have  the  faculty  of  with- 
drawing the  said  steamer  from  the  service  of  the  Charterers,  without  preiudlce  to  any  claim  they 
(the  Owners)  may  otherwise  have  on  the  (Charterers  in  pursuance  of  this  Charter. 

8.  That  the  Charterers  are  to  pay  for  victualling  passengers  at  the  r.ats  of  5/  Br  Sterling  per  day 
for  first  class  passengers,  2/6  for  second  class  [jassengers,  and  1/3  for  laborers  or  steerage  passengers. 

9.  That  the  cargo  or  cargoes  are  to  be  laden  and  or  discharged  'n  any  dock  or  at  any  wharf  or 
place  tluit  the  Charterers  or  their  Agents  may  direct,  provided  the  steamer  can  always  safely  lie 
afloat  at  any  time  of  tide. 

10.  That  the  whole  reach  of  tlie  Vessel's  Holds,  Decks,  and  tLSual  places  of  loading  and  accommo- 
dation of  the  ship  (not  more  than  she  can  reasonably  stow  and  carry),  shall  be  at  the  Charterers' 
disposal,  reserving,  only  proper  and  suffleient  space  for  ship's  officers,  crew,  tackle,  apparel,  furniture, 
provisions,  stores  and  fuel.  Thai,  the  Captain  shall  use  all  Qiligeuce  in  caring  for  the  ventilation  o} 
the  cargo. 

1  Clauses  in  [  ]  were  omitted  from  the  printed  form;  those  in  italics  were  put  in  with  typewriter. 


TIME  CHARTER  PARTIES  187 

Form  61a. — Time  Charter  Party  (Pre-War  Conditions)  (Continued) 

11  That  the  Captain  shall  prosecute  his  voyage  with  the  utmost  despatch,  and  shall  render  all 
customary  assistance  with  Ship's  crew,  tackle,  and  boats.  That  the  Captain  (although  appointed 
by  the  owners)  shall  be  under  the  orders  and  direction  of  the  Charterers  as  regards  employment, 
agency  or  other  arrangements;  and  the  Charterers  hereby  agree  to  indemnify  the  owners  from  all 
consequences  or  liabilities  that  may  arise  from  the  Captain  signing  Bills  of  Lading  or  otherwise 
complying  with  the  same. 

12  That  if  the  Charterers  shall  have  reason  to  be  dissatisfied  with  the  conduct  of  the  Captain, 
OfQcers  or  Engineers,  the  Owner  shall,  on  receiving  particulars  of  the  complaint,  Investigate  the  same, 
and  if  necessary,  make  a  change  in  the  appointment. 

13.  That  the  Charterers  shall  have  permission  to  appoint  a  super-cargo  who  shall  accompany  the 
steamer  and  see  that  voyages  are  prosecuted  with  tlie  utmost  despatch.  He  to  be  furnished  free 
of  charge,  with  first  class  accommodations,  and  same  fare  as  provided  for  captain's  table. 

14.  That  the  Master  shall  be  furnished  from  time  to  time  with  all  requisite  instructions  and 
sailing  directi''ns.  and  shall  keep  a  full  and  correct  Log  of  the  voyage  or  voyages,  which  are  to  be 
patent  to  the  Charterers  or  their  Agents,  and  to  furnish  the  Charterers,  their  Agents  or  Super-Cargo, 
when  required,  a  true,  daily  copy  of  Log,  showing  the  course  of  steamer  and  distance  run,  and  the 
consumption  of  coal.  ,  .      ,  .  .    ,,  ,  j     ., 

15.  [That  the  Charterers  have  the  option  of  contmuing  this  charter  for  a  fiirther  period  of] 

[uii  giving  notice  theronf  to  the  owners  or 

their  agents] .  .  . '. Idays  previous  to  the  expiration 

of  the  first  named  term,  or  any  declared  oi.tion.l     Charterers  to  have  the  option  of  sub-letting  the 
steamer  for  all  or  any  part  of  the  time  covered  by  this  charter. 

16.  That  If  required  by  Charterers,  time  not  to  commence  before 

and  should  Steamer  not  be  ready  for  delivery  at  port  of  delivery  on  or  before 

Charterers  or  their  agents  to  have  the  option  of  Cancelling  this  charter  at  any  time  not  later  than 
the  day  of  Steamer's  readiness. 

17.  That  in  the  event  of  loss  of  time  from  deficiency  of.men  or  stores,  or  from  any  defect  of  break- 
down of  machinery,  steering  apparatus,  etc..  or  damage  from  fire,  collision,  stranding  or  damage  which 
prevents  the  working  of  or  the  continuance  on  the  voyage  of  the  Vessel  for  twenty-four  consecutive 
hours  or  more,  the  payment  of  hire  shall  cease  from  the  commencement  of  the  loss  of  time  till  she 
again  resume  actual  service  for  Charterers,  tight,  staunch  and  strong,  and  in  every  way  fitted  at  the 
place  o;  accident,  or  should  the  Vessel  put  back  from  any  of  the  above-mentioned  causes  or  put  into 
any  other  port  than  that  to  which  she  is  bound,  the  hire  shall  be  suspended  from  the  time  of  her  putting 
back  or  putting  in  until  she  be  again  in  the  same  position  and  the  voyage  resumed  therefrom,  and 
the  port  charges  and  pilotages  at  such  port  shall  be  borne  by  Steamer's  Owners.  Owners  are  also  to 
pay  Charterers  for  the  value  of  any  of  C^harterer's  btmkor  coals  that  are  consumed  while  the  steamer 
la  oft  hire,  based  on  the  current  price  of  bunker  coal  trimmed  into  bunkers  at  the  port  steamer  is  In 
when  off  hire,  but  if  steam.er  is  at  sea  when  off  hire  occurs,  then  price  to  be  based  on  current  rate  at 
the  port  steamer  is  first  in  after  her  period  off  hire.  Also,  if  any  loss  of  time  is  incurred  through 
fault  of  ship,  after  cargo  and  coals  are  on  board,  or  cargo  discharged  and  ship  ready  for  sea  as  far 
ka  Charterers  are  concerned  and  hour  of  sailing  has  been  fixed  by  Charterers  and  reasonable  notice 
given  to  Captain,  such  lost  time  is  to  be  for  Steamer's  account:  but  should  the  Vessel  be  driven  into 
port  or  anchorage  through  stress  of  weather,  or  from  any  accident  to  the  cargo,  such  detention  or  loss 
of  time  shall  be  at  the  Charterer's  risk  and  expense.  If  upon  the  voyage  the  Steamer's  speed  be  reduced 
by  break-down  of  machinery  or  other  casualty,  the  time  lost  and  the  cost  of  the  extra  coal,  if  any, 
consumed  in  consequence  thereof  shall  be  borne  by  the  Owners. 

18.  That  should  the  Vessel  be  lost,  freight  paid  in  advance  and  not  earned  (reckoning  from  the 
date  of  her  last  being  heard  from)  shall  be  returned  to  the  Charterers.  The  act  of  God,  enemies,  fire, 
restraint  of  Princes,  Rulers  and  the  People,  and  all  dangers  and  accidents  of  the  Seas,  River. 
Machinery,  Boilers,  Steam  Navigation  and  errors  of  Navigation,  throughout  this  Charter  Party, 
always  mutually  excepted. 

19.  That  should  any  dispute  arise  between  the  Owners  and  the  Charterers,  the  matter  in  dispute 
shall  be  referred  to  three  per.sons  in  New  York,  one  to  be  appointed  by  each  of  the  parties  hereto, 
and  the  tliird  by  the  two  so  chosen:  their  decision,  or  that  of  any  two  of  tliern,  shall  be  final,  and  for 
the  purpose  of  enforcing  anv  award,  this  agreement  may  be  made  a  rule  of  the  Court. 

2U.  That  the  Owners  shall  have  a  lion  upon  all  cargoes  and  all  sub-freights,  for  any  amounts  due 
under  this  Charter,  and  the  Charterers  to  have  a  lien  on  the  Ship  for  all  moneys  paid  in  advance 
and  not  earned.  ,        ^        ^ 

21.  That  all  derelicts  and  salvages  shall  be  for  owners'  and  Charterers  equal  benefit.  General 
Average,  if  any,  to  be  according  to  York-Antwerp  rules,  1890. 

22.  Charterers  agree  to  arranye  employment  so  as  to  enable  steamer  to  dock  in  the  United  Kingdom 
or  on  the  Continent  not  more  than,  once  in  nine  (9)  months.  [That  as  the  steamer  may  be  from  time 
to  time  employed  in  tropical  waters  during  the  term  of  this  Charter,  steamer  is  to  be  docked,  bottom 
cleaned  and  painted  whenever  Charterers  and  Master  think  necessary,  at  least  once  in  every  six 
months,!  and  payment  of  the  hire  to  be  suspended  until  she  is  again  in  proper  state  tor  the  service. 

2A.  That  the  owners  are  to  provide  ropes,  falls,  slings  and  blocks,  necessary  to  handle  ordinary 
cargo  up  to  three  tons  (of  2240  lbs.  each)  In  weight,  also  lanterns  for  night  work. 

24.  Steamer  to  work  night  and  day  if  required  by  Charterers,  and  all  steam  winches  to  be  at 
Charterers  disposal  during  loading  and  discharging,  and  steamer  to  provide  men  to  work  same  both 
day  and  night  as  required.  Charterers  agreeing  to  pay  for  all  night  work,  at  the  current  local  rate. 

25.  It  is  also  mutually  agreed,  that  this  charter  is  subject  to  all  the  terms  and  provisions  of  and  all 
the  exemptions  from  liability  contained  in  the  Act  of  C^ongress  of  the  United  States,  approved  on  the 
13th  day  of  February,  1893.  and  entitled  "An  Act  relating  to  Navigation  of  Vessels,  etc." 

26.  A  commission  of  Five  per  cent,  upon  the  gross  amount  of  this  Charter  and  the  usual  freight 

brokerage,  payable  by  the  steamship  and  owners,  due  to AND  COMPANY, 

upon  the  signing  hereof,  steamship  lost  or  not  lost,  and  also  upon  any  renewal  or  extension  of  this 
Charter  or  on  sale  of  Vessel. 

27.  An  address  Commission  of  2H  per  cent,  payable  to  

Steamship  Line. 

28.  Penalty  lor  non-performance  of  this  Contract,  estimated  amount  of  damages. 

(.Signed)      &  Company 

(Signed)     (By  Cable  authority  from  Messrs <&  Co. 

Witness  to  the  signature  of      (  dated  at  London,  May  2Sth,  1912. 

Witness  to  the  signature  of         (Signed) 

A  true  Copy  of  the  Original  Charter  Party. 


Agents. 


188       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Form  61b. — time  Charter  Party  (War  Conditionb) 

TIME  CHARTER' 

BOWRING  &  CO. 
17  BATTERY  PLACE 

NEW  YORK 

GOVERNMENT  FORM 

TBIS  CHARTER  PARTY,  made  and  concluded  upon  In  the  City  of  New  York,  the  Sid  day  of 

Mau,  191^.  between  Afessrs Managing  Agents  for  Owners 

of  the  good  Danish  Screw  Steamship of 

of  17SB  tons  gross  rei,'lstor.  and  10!)/}  tons  net  replster,  liavlnir  engines  of nominal 

horse  power  provided  with  propor  certillcate  for  hull  and  machinery,  and  classed,  first  class  of  about 

cubic  feet  capacity  and  about  S/,74  tons  dead  weight  or  thereabouts  on 

Lloyd's  Summer  freeboard  inclusive  of  bunkers,  which  are  of  the  capacity  of  about tons 

of  coal   and  stores  water,  etc.,  now  trading  account Line  and 

Charterers  of  the  City  of   Washington. 

' '  witnc''selh,  1.  T'lat  the  .said  owners  agree  to  let,  and  the  said  Charterers  agree  to  hire  the  said 
steamship  from  the  time  of  delivery,  for  one  (.1)  round  trip  within  the  undermentioned  limits,  said  voyage 
to  occupy  about  six  (6)  tcccks.  Steamer  to  be  placed  at  the  disposal  of  the  Charterers,  whcit  and  where 
steamer  is  redelivered  by  the  Munson  S.  S.  Line,  under  the  charier  to  them  dated  April  ^9th,  WIS;  it  being 
understood  that  this  charter  is  for  direct  continuation  and  that  there  shall  be  no  interruption  of  time  between 
the  two  charterers  [In  such  dock  or  at  such  wharf  or  place  (where  she  may  always  safely  lie  afloat  at  all 
times  of  tide)  as  the  Charterers  may  direct!  and  being  on  her  delivery  ready  to  receive  cargo,  and  tight, 
staunch,  strong  and  in  every  v,-ay  fitted  for  the  service,  having  water  ballast,  steam  winches  and 
donkey  boiler  wllli  capacity  to  ran  all  the  steam  wlnch;>s  at  one  and  the  same  time,  and  with  full 
complement  of  olllccr.s.  seamen,  engineers,  and  firemen  for  a  vessel  of  her  tonnage  and  to  be  so  main- 
tained during  the  continuation  of  this  Charter  Party,  to  be  employed  in  carrying  lawful  merchandise, 
excluding  arms,  ammunitions,  explosives  and  injurious  cargo.  (Including  petroleum  or  its  products,  in 
cases  and  passengers  so  far  as  accommodations  will  allow  (but  any  expense  necessary  to  fit  the  steamer 
to  comply  with  United  States  Passenger  Inspection  law.=  to  be  borne  by  the  Charterers)!  In  such  law- 
ful trades  between  safe  port  and/or  ports  in  (British  North  .America  and/or]  United  States  of  America 
and 'or  West  Indies  and  or  Central  America  and /or  Caribbean  Sea  and/or  Gulf  of  M:'xlco  and/or 
Soutli  America  not  Stuth  of  Dcmerara  (Europe  and /or  Africa  and/or  Asia  and/or  Australia  excluding 
River  St.  Lawrence  from  October  1,  to  May  1,  (White  Sea.  Black  Sea,  and  the  Baltic  out  of  season) 
Magdaiena  River  and  all  unsafe  ports]  excluding  Magdalcna  River  and  all  unhealthy,  unsafe  and 
dangerous  ports  and  rivers  and  ports  where  hostilities  are  in  progress,  as  the  Charterers  or  their  Agents 
shall  direct  on  the  following  conditions: 

2.  That  the  owner  shall  provide  and  pay  for  all  provisions,  wages  and  Consular  shipplnf:  and 
discharging  fees  of  the  f'antaln.  Officers,  Engineers,  Firemen  and  Crew;  shall  pay  for  the  Insurance 
of  the  vessel,  also  for  all  the  cabin,  deck,  englne-rooui  and  other  necessary  stores,  and  maintain  her 
In   a  thoroughly   efflclent   state   hi   hull   and   machinery   for   and   during   the   service. 

?,.  That  the  Charterers  shall  provide  and  pay  for  all  the  Coals,  Fuels.  Port  Charges.  Pilotag&s, 
Agencies,  CommLsslons.  Consular  Charges  (except  those  pertaining  to  the  captain,  officers,  or  crew) 
and  all  other  Charges  whatsoever,  except  those  before  stated.  Charterers  are  to  provide  necessary 
dunnage  and  shifting  boards,  but  owner  to  allow  them  the  use  of  the  dunnage  and  shitting  boards 
already  aboard  steamer. 

4.  That  the  Charterers  shall  accept  and  pay  at  once  on  delivery  of  steamer  for  all  Coal  In  the 
steamers  Bunkers  on  delivery  and  the  Owners  shall,  on  expiration  of  the  Charter  Party,  pay  for  all 
Coal  left  in  the  Bunkers,  each  at  tlie  current  market  prices  at  the  respective  Ports  where  she  is  delivered 
to  them. 

5.  That  the  Charterers  shall  pay  for  the  ase  and  hire  of  the  said  vessel  Thirty-five  shillings  (35/) 
on  steamer's  total  dead  ivcight  capacity  on  Summer  marks.  British  Sterling  per  Calendar  Monthj  com- 
mencing on  and  from  the  day  of  her  delivery,  as  aforesaid,  and  at  and  after  the  same  rate  for  any 
part  of  a  month;  hire  to  continue  until  her  redelivery  in  like  good  order  and  condition  to  the  Owners 
(unl2S.'5  lost)  at  n  port  in  the  Vnitid  .Htatcs  North  of  I  latter  as  but  not  east  of  New  York,  at  Charterers'  option. 

6.  That  sliould  the  steamer  be  on  her  voyage  towards  the  port  of  return  delivery  at  the  time  a 
payment  of  hire  becomes  due.  said  i)ayment  shall  be  made  for  stich  a  length  of  time  as  tlie  owners 
or  their  at;  'nts.  anri  Charterers,  or  their  agents  may  agree  upon,  as  the  estimated  time  necessary 
to  complete  the  voyage,  and  when  the  steamer  is  delivered  to  owner's  agents  any  difference  shall 
be  refunded  by  steamer  or  paid  by  Charterers,  as  the  case  may  require. 

7.  Payment  of  said  hire  to  lie  made  in  rash  at  New  York  at  the  current  short  sight  rate  of  Exchange, 
(or  In  approved  Bankers'  sight  bills  on  London,  at  owner's  option!  scmi-montlily  in  advance,  or  as 
agreed,  and  In  default  of  such  payment  the  Owners  shall  have  the  faculty  of  withdrawing  the  said 
steamer  from  the  service  of  the  Cliarterers,  without  prejudice  to  any  claim  they  (the  Ownersj^may 
otherwise  have  on  the  Charterers  in  pursuance  of  this  Charter. 

8.  [That  the  Charterers  are  to  pay  for  victualling  passengers  at  the  rate  of  5/  Br.  Sterling  per  day 
for  first  clivss  pa-ssengers.  2/6  for  second  cla.ss  passengers,  and  )  /3  for  laborers  or  steerage  passengers.] 

9.  That  the  cargo  or  cargoes  are  to  be  laden  and /or  discharged  in  any  dock  or  at  any  wharf  or 
place  that  the  Charterers  or  their  Agents  may  direct,  provided  the  steamer  can  always  safely  lie 
afloat  at  anv  time  of  tide. 

10.  That  the  whole  reach  of  the  Vessel's  Holds.  Decks,  and  usual  places  of  loading,  and  accommo- 
dation of  the  .ship  (not  more  than  she  can  re^-sonably  stow  and  carry),  shall  be  at  the  Charterers' 
disposal,  reservini,',  only  proper  and  .sufficient  space  for  ship's  officers,  crew,  tackle,  apparel,  furniture, 
provisions,  stores  and  fuel.  That  the  Captain  shall  use  all  diligence  In  caring  for  the  ventilation  of 
the  cargo. 

11.  That  the  Captain  .shall  prosecute  his  voyage  with  the  utmost  despatch,  and  shall  render  all 
customary  assistance  with  Ship's  crew,  tackle,  and  bo.at.s.  That  the  Captain  (although  appointed  by 
the  owners)  shall  be  under  the  orders  and  direction  of  the  Charterers  as  regards  employment,  agency, 
or  other  arrangement.s:  and  the  Charterers  hereby  agree  to  Indemnify  the  owners  from  all  conse- 
quences of  liabilities  that  may  ari.se  from  the  Captain  signing  Bills  of  Lading  or  otherwise  complying 
with  the  same. 

12.  That  If  the  Charterers  shall  have  reason  to  be  dissatisfied  with  the  conduct  of  the  Captain, 
Officers  or  Erginoers.  the  Owner  shall,  on  receiving  particulars  of  the  complaint.  Investigate  the  same, 
and  If  necessary,  make  a  change  in  the  appointment. 

>  Clauses  enclosed  in  [  ]  were  eliminated  from  the  printed  form;  those  In  Italics  were  Inserted  with 
typewriter. 


TIME  CHARTER  PARTIES  189 

Form  61B. — time  chakteu  Party  (War  Conditions) — (.Continued) 

13  [That  the  Charterers  shall  have  permission  to  appoint  a  super-cargo  who  shall  accompany 
the  steamer  and  see  that  voyages  are  prosecuted  with  the  utmost  despatch.  He  to  be  furnished 
free  of  charge  with  lirst  class  accommodations,  and  same  fare  as  provided  for  captain  s  table.] 

14  That  the  Master  shall  be  furnished  from  time  to  time  with  all  requisite  instructions  and 
sailing  directions,  and  shall  keep  a  full  and  correct  Log  of  the  voyage  or  voyages,  which  are  to  be 
patent  to  the  Charterers  or  their  Agents,  and  to  furnish  the  Charterers,  their  Agent  or  huper-Cargo, 
when  required,  a  true,  dally  copy  ol  Log,  showing  the  course  of  steamer  and  distance  run  and  the 
consumption  of  coal.  ,         ,j,,ji,         ,.        ,  .„ 

15  It  is  agreed  that  steamer  is  to  be  docked  bottom  cleaned  and  painted  before  she  enters  on  delivery 
hcreunder'unless  this  has  been  done  wUMn  the  last  six  months  from  date  hereof.  [That  the  Charterers 
have  the  "option  of  continuing  this  charter  tor  a  further  period  of  ... .  .on  giving  notice  thereof  to 
the  owners  or  their  agents days  previous  to  the  expiration  of  the  first  named  term,  or  any  de- 
clared option].  Charterers  to  have  the  option  of  sub-letting  the  steamer  for  all  or  any  part  of  the 
time  covered  by  this  charter.  .    , 

16  [That  if  required  by  Charterers,  time  not  to  commence  before.  . 

and  should  Steamer  not  be  ready  for  delivery  at  port  of  delivery  on  or  before \-    ■  ic' 

Charterers  or  their  agents  to  have  the  option  of  Cancelling  this  charter  at  any  time  not  later  than 
the  day  of  Steamer's  readiness.)  ,,  .  ^  ,  ^..^.i,, 

17  That  in  the  event  of  loss  of  time  from  deficiency  of  men  or  stores,  or  from  any  defect  of  break- 
down of  machinery,  steering  apparatus,  etc.,  or  damage  from  fire,  collision,  strandmg  or  damage  which 
prevents  the  working  of  or  the  continuance  on  the  voyage  of  tje  Vessel  for  twenty-four  consecutive 
hours  or  more  the  payment  of  hire  shall  cease  from  the  commencement  of  the  loss  ol  time  till  she 
again  resume  actual  service  for  Charterers,  tlgit,  staunch  and  strons.  and  In  every  way  fitted  at  the 
place  of  accident  or  should  the  Vessel  put  back  from  any  of  the  above-mentioned  causes  or  put  into 
any  other  po'-t  Uan  that  to  which  she  is  bound,  the  hire  shall  be  suspended  from  the  time  of  uer  putting 
back  or  putttag  in  until  she  be  again  in  the  same  position  and  the  voyage  resumed  therefiom.  and 
the  port  charges  and  pilotages  at  such  port  shaU  be  borne  by  Steamer's  Owners.  Owners  are  also 
to  'pay  Charterers  lor  the  value  ol  any  of  Charterers'  bunker  coals  that  are  consumed  while  the 
steamer  is  off  hire  based  on  the  current  price  of  bunker  coal  trimmed  into  bunkers  at  the  port 
steamer  is  In  when  oH  hire,  but  if  steamer  is  at  sea  when  off  hire  occurs  then  price  to  be  based  on 
current  rate  at  the  port  steamer  is  first  hi  after  her  period  off  hire.  Also,  if  any  loss  of  time  is  mcurred 
through  fault  of  ship,  after  cargo  and  coals  are  on  board,  or  cargo  discharged  and  ship  ready  for  sea 
as  far  as  Charterers  are  concerned  and  hour  of  sailing  has  been  fl.xed  by  Charterers  and  reasonable 
notice  given  to  Captain,  such  lost  time  is  to  be  for  Steamer's  account;  but  should  the  Vessel  be  driven 
Into  port  or  anchorage  through  stress  of  weather,  or  from  any  accident  to  the  cargo,  such  detention 
or  loss  of  time  shall  be  at  the  Charterers'  risk  and  expense.  If  upon  the  voyage  the  Steamer's  speed 
be  reduced  by  break-down  of  machinery  or  other  casualty,  the  time  lost  and  the  cost  of  the  e.\tra 
coal.  If  anv.  consumed  In  consequence  thereof  shall  be  borne  by  the  Owners.  ^   ^      ,      ,       ^ 

IS  That  should  the  Ve.sscl  be  lost,  freight  paid  in  advance  and  not  earned  (reckoning  from  the 
date  of  her  last  being  heard  from)  shall  be  returned  to  the  Charterers.  The  act  of  God,  enemies,  fire, 
restraint  of  Princes,  Rulers  and  the  People,  and  all  dangers  and  accidents  of  the  Seas,  River, 
Machinery,  Boilers.  Steam  Navigation  and  errors  of  Navigation,  thr  ughout  this  Charter  Party, 
always  mutually  excepted.  ,     „  j  ...    ^,     ^  »,,  ^^      ,     j,       ^ 

19.  That  should  any  dispute  arise  between  the  Owners  and  the  Charterers,  the  matter  In  dispute 
shall  be  referred  to  three  persons  hi  New  York,  one  to  be  appointed  by  each  of  the  parties  hereto, 
and  the  third  by  the  two  so  chosen;  their  decision,  or  that  of  any  two  of  them,  shall  be  final,  and  for 
the  purpose  ol  enforcing  any  award,  this  agreement  may  be  made  a  rule  of  the  Court. 

20  That  the  Owners  shall  have  a  lien  upon  all  cargoes  and  ail  sub-freights,  for  any  amounts  due 
under  this  Charter,  and  the  Charterers  to  have  a  lien  on  the  Ship  for  all  moneys  paid  in  advance 
and  not  earned.  .       ^  ^._  .  ,  ._       ^.      ^ 

21.  That  all  derelicts  and  salvages  shall  be  for  owners  and  Charterers  equal  benefit.  General 
Average,  if  any.  to  be  according  to  York-Antwerp  rules.  1890.  ,     .        .. 

22.  (That  as  the  steamer  may  be  from  time  to  time  employed  In  tropical  waters  durmg  the  term 
of  this  Charter,  steamer  is  to  be  docked,  bottom  cleaned  and  painted  whenever  Charterers  and  Master 
think  necessary,  at  least  once  in  every  six  months,  and  payment  of  the  hire  to  be  suspended  imtll 
she  Is  again  in  proper  state  for  the  service.)  ^  ^,     ,  ^     ^,        ^, 

23.  That  the  owners  are  to  provide  ropes,  falls,  slings  and  blocks  necessary  to  handle  ordinary 
cargo  up  to  three  tons  (of  2210  lbs.  each)  in  weight,  also  lanterns  for  night  work. 

24.  Steamer  to  work  night  and  day  if  required  by  Charterers,  and  ail  steam  winches  to  be  at 
Charterers'  disposal  during  loading  and  discharging,  and  steamer  to  provide  men  to  work  same  both 
day  and  night  as  required.  Charterers  agreemg  to  pay  for  all  [night  work,  at  the  current  local  rate] 
overtime  of  officers  and  crew,  shore  winchmcn,  if  required,  to  be  for  Charterers'  account. 

25.  It  Is  also  mutually  agreed,  that  this  charter  is  subject  to  al  the  terms  and  provisions  of  and 
all  the  exemptions  from  liability  contained  in  the  Act  of  Congress  of  the  United  States,  approved 
on  the  13th  day  of  February.  1893,  and  entitled  "An  Act  reiatmg  to  Navigation  of  Vessels,  etc." 

26.  A  commission  of  Five  per  cent,  upon  the  gross  amount  ol  this  Charter  and  the  usual  freight 

brokerage,   payable  by  the  steamship  and  owners,  due  to   AND  COMPANY, 

upon  the  signing  hereof,  steamship  lost  or  not  lost,  and  also  upon  any  renewal  or  extension  of  this 
Charter  or  on  sale  of  Vessel. 

27.  An  address  Commission  of  2  H  per  cent,  payable  to 

28.  Penalty  for  non-performance  of  this  Contract,  estimated  amount  ol  damages. 

(Siffned) 


{i 


witness  to  the  signature  of  <  By  Cable  authority  from  &  Co. 

Idate  at  London,  May  S3d.  191S. 
{Signed)  UNITED  states  shipping  board. 

■Witness  to  the  signature  of  Chartering  Committee, 

A  true  Copy  of  the  Orlgmal  Charter  Party,  WELDING  RING. 

Chairman. 
Agents, 
Note: — This  charter  is  subject  to  owners'  securing  approval  of  same  from  the  Interallied  Chartering 
Executive  and  also  securing  license  for  the  voyage  from  the  Danish  Government. 

In  event  of  war  conditions  steamer  has  liberty  to  -proceed  via  any  route  to  destination  and  to  deviate  in 
the  course  of  the  voyage  to  avoid  capture,  destrtwtion,  s  izure,  etc.,  and  if  al  any  time  owners  deem  it  unsa.fe 
for  vessel  to  leave  port,  oieners  to  have  privilege  of  delaying  departure  for  a  reasonable  time,  such  delay  to 
oe  for  owners'  account. 

In  the  event  of  the  Danish  Government  requisitioning  this  steamer  this  Charter  becomes  null  and  void. 
In  the  event  of  the  vessel  loading  on  the  berth  and/or  loading  general  cargo  the  charterers  shall  bear  the  first 
£.100  on  any  cargo  of  claims  arising  from  improper  stowage,  horl  delivery  (whether  from  pilferage  or  any 
cause  whatsoever)  and  over  carriage  for  which  there  may  be  responsibility  on  the  part  of  the  ship  owner 
and  if  the  ship  owner  shall  from  any  cause  have  to  pay  such  claims  in  the  first  instance  he  shall  be  iiuitm- 
iiifiea  by  the  charterers  up  to  Vie  exleju,  of  llm  said  £100. 


190       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


Commercial  Time  Charters 

The  reader  is  urged  to  read  carefully  the  conditions  con- 
tained in  the  time  charter  reproduced  in  Form  61,  for  it  is 
typical  of  the  time  forms  commonly  used  at  American  ports 
when  a  vessel  owner,  or  a  time  charterer  who  is  willing  to  sub- 
let a  vessel  leases  or  charters  a  steamer  to  a  charterer.  It  is, 
moreover,  the  time  charter  that  was  approved  by  the  Govern- 
ment during  the  war.  In  this  charter  the  vessel,  which  is 
identified  by  name,  home  port,  gross  and  net  register  tonnage, 
nominal  horse-power,  cubic  feet  and  dead  weight  capacity,  proper 
inspection  certificate  covering  hull  and  machinery,  and  specified 
classification  rating,  is  chartered  by  the  undersigned  owner  or 
his  agents  to  the  undersigned  charterer  for  an  agreed  period 
of  time,  subject  to  the  charterer's  continuing  it  for  a  further 
specified  period.  A  time  charter's  duration  may  be  variously 
established  for  a  more  or  less  fixed  period  of  months  or  years 
or  as  was  at  times  done  during  the  war,  for  the  duration  of 
the  war;  or  it  may  cover  an  agreed  number  of  voyages  in  a 
defined  trade.  In  the  latter  case  the  estimated  time  required 
to  make  such  voyages  is  usually  stated,  the  owner  reserving 
the  right  to  terminate  the  charter  if  it  becomes  clear  that  the 
last  round  trip  voyage  provided  for  in  the  charter  could  not 
be  completed  within  the  period  of  time  specified. 

The  typical  time  charter  reproduced  in  Form  61a  further 
provides  that  the  vessel  will  be  placed  at  the  disposal  of  the 
charterer  at  a  designated  port;  that  it  will  be  in  fit  condition 
to  receive  cargo,  and  that  it  will,  during  the  life  of  the  charter, 
be  maintained  in  a  seaworthy  condition  and  with  a  full  com- 
plement of  officers  and  crew.  The  charterer  is  authorized  to 
transport  general  merchandise,  including  petroleum  or  its  prod- 
ucts, and  passengers  so  far  as  accommodations  permit,  in  lawful 
trades  between  safe  ports  in  the  United  States  or  British  North 
America  and  the  West  Indies,  Central  America,  the  Caribbean 
Sea,  Mexico,  the  Gulf  of  Mexico,  South  America,  Europe, 
Africa,  Asia,  and  Australia,  but  excluding  the  St.  Lawrence 
River  from  Oct.  1st  to  May  1st,  the  White,  Black  and  Baltic 
Seas  out  of  season,  the  Magdalena  River  and  all  unsafe  ports. 

The  vessel  is  to  be  operated  under  direction  of  the  charterer 


TIME  CHARTER  PARTIES  191 

or  his  agent  subject  to  28  numbered  conditions.  Special  atten- 
tion is  called  to  the  clauses  covering  the  charter  rate  or  hire 
which  is  to  be  paid  by  the  charterer  to  the  owner.  The  usual 
practice  in  seagoing  traffic  under  a  time  charter  covering  a  cargo 
vessel  is  the  payment  of  a  fixed  amount  per  deadweight  ton  per 
calendar  month.  The  basis,  it  will  be  noted,  is  the  deadweight 
capacity  of  the  vessel  regardless  of  the  amount  of  cargo  carried. 
In  case  of  a  passenger  steamer  the  time  charter  payment  is 
more  commonly  based  upon  the  vessel's  gross  register  tonnage. 
Payment  may,  however,  in  either  case  be  fixed  on  a  lump  sum 
basis. 

An  additional  clause  prescribes  the  mode  of  payment,  the 
time  chai-ter  reproduced  in  Form  61a  providing  that  it  shall  be 
"in  cash  at  the  current  short  sight  rate  of  exchange,  or  in  ap- 
proved bankers'  sight  bills  on  London  .  .  .  monthly  in  advance, 
or  as  agreed."  The  corresponding  clause  in  a  time  form  ap- 
proved by  the  New  York  Produce  Exchange,  Nov.  6,  1913, 
provides  that  payment  is  to  be  "made  in  New  York  in  cash  at 
the  current  short  sight  rate  of  exchange,  or  in  approved  bankers' 
sight  bills  on  London,  at  owner's  option,  semi-monthly,  in  ad- 
vance, and  for  the  last  half  month  or  part  of  same  the  approxi- 
mate amount  of  hire,  and  should  same  not  cover  the  actual  time, 
hire  is  to  be  paid  for  the  balance  day  by  day,  as  it  becomes  due, 
if  so  required  by  owners,  unless  bank's  guarantee  or  deposit  is 
made  by  the  charterers."  In  case  of  default  of  payment  the 
owner  has  the  right  to  withdraw  his  vessel  from  the  service 
of  the  charterer  without  prejudice  to  any  claim  the  owner  may 
have  under  the  terms  of  the  charter  party.  In  the  event  of 
loss  of  time  due  to  deficiency  of  men  or  stores,  breakdown  of 
machinery,  stranding,  fire  or  damage  preventing  the  operation 
of  the  vessel,  the  time  charter  in  Form  61a  provides  that,  if  the 
loss  of  time  exceeds  twenty-four  consecutive  hours,  payment  of 
the  hire  is  discontinued  from  the  commencement  of  the  loss  of 
time  until  the  vessel  is  again  in  an  efficient  state  to  resume  the 
service.  Should  the  vessel  be  lost,  all  freight  paid  in  advance 
and  not  earned  up  to  the  date  of  the  vessel  last  being  heard  of 
is  to  be  returned  to  the  charterer.  The  owner  has  a  lien  on  the 
cargo  and  on  all  sub-freights  for  amounts  due  him;  and  the 
charterer  has  a  lien  on  the  vessel  for  amounts  paid  in  advance 
and  not  earned. 


192       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

The  time  charter  reproduced  in  Form  61a  next  proceeds  to 
divide  between  the  owner  and  charterer  the  expenses  and  re- 
sponsibility connected  with  the  operation  of  the  vessel.  The 
owner,  who  receives  pay  for  the  use  of  his  vessel,  is  obliged 
to  pay  all  the  wages  of  the  officers  and  crew  who  as  stated 
above  are  provided  by  him,  and  all  consular  fees  incurred  in 
shipping  and  discharging  the  officers  and  crew.  He  is  also  re- 
quired to  provide  and  pay  for  all  provisions  for  their  use,  all 
necessary  ship's  stores,  and  the  insurance  on  the  vessel.  He 
further  agrees  to  maintain  the  hull  and  ship's  machinery  in  an 
efficient  state. 

The  charterer  who  pays  the  amount  of  hire  agreed  upon  is 
required  to  provide  and  pay  for  all  bunker  coal  or  other  fuel ; 
all  port  charges  and  consular  fees  other  than  the  consular  fees 
connected  with  the  shipping  and  discharging  of  officers  and 
crew;  also  pilotage  charges,  agencies,  commissions  and  all  other 
charges  except  those  specifically  delegated  to  the  owner  in  the 
charter.  The  clauses  regarding  fuel  provide  further  that  the 
charterer  accepts  and  pays  for  any  coal  in  the  bunkers  on  de- 
livery, while  the  owner  similarly  accepts  and  pays  for  all  coal 
left  in  the  bunkers  on  the  expiration  of  the  time  charter.  The 
charterer's  obligation  to  pay  pilotage  and  port  charges  is  modified 
by  a  special  clause  to  the  effect  that  in  case  the  vessel  puts  into 
port  other  than  the  one  to  which  she  is  bound  because  of  de- 
ficiency of  men  or  stores,  breakdown  of  machinery,  stranding, 
fire  or  damage  preventing  the  working  of  the  vessel,  pilotage 
and  port  charges  there  incurred  shall  be  paid  by  the  owner. 
If  the  vessel  is  driven  into  port  or  to  anchorage  by  stress  of 
weather  or  accident  to  cargo  the  charterer's  obligation  to  pay, 
however,  remains  effective. 

The  charterer  may  use  whatever  dunnage  is  on  board  the 
vessel  at  time  of  delivery,  but  he  is  required  to  provide  any  ad- 
ditional dunnage  that  may  be  necessary.  If  passengers  are  car- 
ried, the  charterer  is  also  required  to  pay  passenger  vic- 
tualing costs  at  agreed  rates  per  passenger  per  day,  the  amount 
varying  for  first  class,  second  class  and  steerage  passengers. 

Time  charters  in  addition  contain  various  clauses  further 
defining  the  rights  and  duties  of  the  owner,  charterer  and  master 
cf  the  vessel.  The  "whole  reach"  of  the  vessel's  holds,  deck  and 
usual  places  of  loading  and  accommodation  are  at  the  disposal 


TIME  CHARTER  PARTIES  193 

of  the  charterer,  excepting  such  parts  as  are  needed  for  officers 
and  crew,  tackle,  apparel,  furniture,  provisions,  stores  and  fuel, 
and  excepting  also  that  the  cargo  may  not  exceed  what  the  vessel 
can  reasonably  stow  and  cany.  The  captain  is  required  to 
prosecute  the  voyage  of  the  vessel  with  the  utmost  dispatch;  to 
render  all  customary  assistance  with  the  crew,  tackle  and  boats; 
to  keep  a  full  and  correct  log  of  all  voyages  open  to  the  inspec- 
tion of  the  charterer  or  his  agent  and  furnish  a  daily  log  to  the 
charterer,  his  agent,  or  super  cargo  showing  the  course  of  the 
steamer,  the  distances  run  and  fuel  consumption;  and  to  use 
all  diligence  in  caring  for  the  ventilation  of  cargo.  The  captain 
shall  be  under  the  orders  and  direction  of  the  owner  as  regards 
employment,  agency  or  other  arrangements,  the  owners,  how- 
ever, being  indemnified  against  consequences  arising  from  the 
signing  of  bills  of  lading  by  the  captain  or  other  arrangements 
entered  into  by  order  of  the  charterer.  Should  the  charterer 
be  dissatisfied  with  the  conduct  of  the  captain,  officers  or  en- 
gineers the  owners  shall  investigate  complaints  and  if  neces- 
sary expect  a  change.  In  the  time  charter  reproduced  in  Form 
61a,  the  charterer  is  given  the  right  to  sublet  the  vessel,  and  to  ap- 
point a  supercargo  who  is  to  be  furnished  with  first-class  ac- 
commodations free  of  charge.  If  the  steamer  is  not  ready  for 
delivery  to  the  charterer  on  or  before  an  agreed  date  he  may 
under  the  so-called  cesser's  or  cancellation  clause  cancel  the 
charter  at  any  time  not  later  than  the  day  of  the  steamer's 
readiness. 

Should  any  dispute  arise  between  owner  and  charterer,  pro- 
vision is  made  for  the  appointment  of  a  board  of  three  persons, 
the  majority  decision  of  whom  shall  be  binding.  As  the  steamer 
may  from  time  to  time  be  employed  in  tropical  waters,  provi- 
sion is  made  for  the  docking  of  the  vessel  at  least  once  every 
six  months  to  be  bottom  cleaned  and  painted,  or  more  frequently 
if  the  charterer  and  captain  think  necessary,  and  when  so  docked 
the  payments  by  charterer  to  owner  are  suspended  until  the  ves- 
sel is  again  fit  for  service.  The  owner  is  required  to  provide 
ropes,  falls,  slings  and  blocks  necessary  to  handle  ordinary  cargo 
up  to  three  tons  in  weight,  and  lanterns  for  night  work.  If  the 
charterer  requires,  the  steamer  is  to  work  night  and  day,  and  all 
steam  winches  and  sufficient  men  to  work  them  are  to  be  at  the 
disposal  of  the  charterer,  who  agrees  to  pay  for  night  work  at 


194       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

the  current  local  rate.  Derelicts  and  salvage  are  to  be  for  the 
mutual  benefit  of  the  owner  and  charterer.  "Acts  of  God, 
enemies,  fire,  restraint  of  Princes,  Rulers  and  People,  and  all 
dangers  and  accidents  of  the  seas,  river,  machinery,  boilers,  steam 
navigation,  and  errors  of  navigation,  throughout  this  charter 
party,"  are  always  mutually  excepted,  and  the  charter  is  also 
governed  by  the  provisions  of  and  the  exemptions  from  liability 
contained  in  the  Harter  Act  of  Feb.  13,  1893.^ 

A  penalty  clause  providing  for  the  estimated  amount  of  dam- 
ages in  case  of  non-performance  of  contract  is  added.  A  com- 
mission or  brokerage  clause  requires  the  vessel  owner  to  pay 
the  ship  broker  who  effected  the  charter  a  5  per  cent,  commission 
on  the  gross  amount  of  the  charter  and  the  usual  freight  broker- 
age, whether  the  vessel  is  lost  or  not  lost,  upon  the  signing  of 
the  charter  and  also  upon  any  extension  or  renewal  of  the 
charter  of  sale  of  the  vessel.  An  address  commission  clause 
provides  for  the  payment  of  a  2 J/2  per  cent,  commission  for 
attending  to  the  ship's  business  in  port. 

FORM  62. — New  York  produce  Exchange  TmB  Charter  Partt 

Speed  about  9  knots 
Consumption  abovt  30  tons  good  coal 

TIME  CHARTERS 

BOWRING  &  CO. 

17  BATTERY  PLACE 

NEW  YORK 

SHIP  BROKERS  AND  STEAMSHIP  AGENTS  AND  OENBRAL 
COMMISSION  MERCHANTS 

GOVERNMENT  FORM 

Approved  by  the  New  York  Produce  Exchange,  November  6th,  191S 
THIS  CHARTER  PARTY  made  and  concluded  upon  In  the  City  of  London,  the  SSth  day  of 

Aprii.    1916,     Between    Messrs.    The    Co.   of  New    York 

Disponents  [Agents  for  Owners)  of  the  good  English  Screw  Steamship     of 

London,  of  4S4S  tons  gross  register,  and  3171  tons  net  register,  having  engines  of  403  nominal 
horse  power  and  with  hull,  machinery  and  equipment  In  a  thoroughly  efBelent  state,  and  classed 
100  Al  »t  Lloyd's  of  about  S90.000  cubic  leet  Israln]  bait  capacity  eicludinu  300  tons  permanent 
buntcrs  and  about  7900  tons  totcU  dead  weight  capacity  (cargo  and  bunkers.  Including  stores  [not 
exceeding  fifty  tons)   on  Lloyd's  Summer  freeboard,  inclusive  of  permanent  bunkers,  which  are  of 

the  capacity  of  about tons  of  coal]  now  trading  and  Messrs 

<fc  Co.,  Charterers  of  the  City  of  London. 

WITNESSETH,  That  the  said  Owners  agree  to  let,  and  the  said  Charterers  asree  to  hire  the  said 

Steamship  from  the  time  of  delivery,  for  [about]  a  voyage  from  Calcutta  to  the  States  {via  Cape  or  Panama 
Canal)  between  Cape  Hatteras  and  Boston,  both  inclvsive,  calling  at  usual  coaitng  stations.  Charterers 
to  have  liberty  to  sublet  the  Steamer  for  all  or  any  part  of  the  time  covered  by  this  Charter,  but 
Charterers  remaining  responsible  for  the  fulfllment  of  this  Charter  Party. 

Steamer  to  be  placed  at  the  disposal  of  the  Charterorn.  at  Calrulta,  in  such  flc'k  or  at  such  wharf  or 
place  (where  she  may  always  safely  He  afloat,  at  all  times  of  tide),  as  the  Charterers  may  direct,  and 
being  on  her  delivery  ready  to  receive  cnrgo  with  cle!)n-swept  holds  and  tight,  staunch,  strong  and  In 
every  way  fitted  for  the  .=w-rvice.  having  water  ballast,  steam  winches  and  donkey  boiler  with  capacity 
to  run  all  the  steam  winches  at  one  and  the  same  time  (and  with  full  complement  of  ofdcers.  seamen, 
engineers  and  firemen  for  a  ve.'Jsel  of  her  tonnage! .  to  be  employed.  In  carrj'lng  lawful  merchandise. 
Including  petroleum  or  Its  products,  and  passengers  so  far  as  accommodations  will  allow  (but  any 
expense  necessary  to  Ot  the  stpamer  to  comply  with  United  States  Passenger  Inspection  laws  to  be 
borne  by  Charterers)  In  such  lawful  trades,  [between  safe  port  and/or  ports  In  British  North  America, 
and/or  United  States  of  America,  and/or  West  Indies,  and/or  Central  America,  and/or  Caribbean 

1  See  Manual  on  Marine  Insurance,  by  S.  S.  Huebner. 

5  Clauses  enclosed  In  [  ]  were  eliminated  from  the  printed  form;  those  In  Italics  were  Inaerted  with 
typewriter. 


TIME  CHARTER  PARTIES  195 

FORM"62. — New  York  Produce  Exchange  Time  Charter  Party  (Continued) 
Sea,  and/or  Gulf  of  Mexico,  and/or  Mexico,  and/or  South  America]  as  above  [and/or  Eurooe  and/or 
Africa,  and/or  Asia,  and/or  Australia,  excluding  River  St.  Lawrence  from  October  1st  to  May  1st 
White  Sea.   Black   Sea  and   the  Baltic  out  of  season,   Magdalena  River,   and  all   unsafe   ports:] 

as  the  Charterers  or  their  Agents  shall  direct,  on  the  foliowirig  conditions: 

1.  That  the  Owners  shall  provide  and  pay  for  all  provisions,  wages  and  Consular  shipping  and 
discharging  fees  of  the  Captain.  OlBcers,  Engineers.  Firemen  and  Crew:  shall  pay  for  the  insurance 
of  the  vessel,  also  for  all  the  cabin,  deck,  engine-room  and  other  necessary  stores,  and  maintain  her 
class  and  keep  the  steamer  In  a  thoroughly  efficient  state  In  hull,  machinery  and  eaulpment  for  and 
during  the  service. 

2.  That  the  Charterers  shall  provide  and  pay  for  all  the  Coals  except  as  otherwise  agreed  Port 
Charges.  Pilotages,  Agencies.  Commissions.  Consular  Charges  (except  those  pertaining  to  the  Captain 
Officers  or  Crew),  and  all  other  usual  expenses  except  those  before  stated,  but  when  the  vessel  puts  into 
a  port  for  causes  for  which  steamer  Is  responsible,  then  .ill  such  charges  incurred  shall  be  paid  bv  owners 
but  should  vessel  be  driven  into  port  or  to  anchorage  through  stress  of  weather  or  any  accident  to' 
cargo  such  detention  and  loss  of  time  to  be  at  Charterers'  risk  and  expanse. 

Charterers  are  to  provide  necessary  dunnage  and  shifting  boards  but  Owners  to  allow  them  the  use 
of  the  dimnage  and  shifting  hoards  already  aboard  Steamer.  Charf^rers  to  huve  the  privilege  of 
using  shifting  boards  for  dunnage,   they  making  good  for  any  damage  thereto 

3.  That  the  Charterers  shall  accept  and  pay  for  all  Coal  In  the  Steamer's  Bunkers  and  the  Owners 
shall,  on  expiration  of  this  Charter  Party,  pay  for  all  Coal  left  In  the  Bunkers  at  the  current  market 
price  at  the  respective  places  where  she  is  delivered  to  them, 

4.  That  the  Charterers  shall  pay  for  the  use  and  hire  of  the  said  Vessel  170,000  say  Sctwnty  thnvsand 

V.  S.  Dollars  [Brltjsh  Sterling]    ... per  Calendar  Month. 

commencing  on  and  from  the  day  of  her  delivery,  as  aforesaid,  and  at  and  after  the  same  rate  for 
any  part  of  a  month:  hire  to  continue  until  the  hour  of  the  day  of  her  re-<lellvery  In  like  good  order  and 
condition,  ordinary  wear  and  tear  excepted,  to  the  Owners  (unless  lost)  at  a  port  in  the  states  between 
Cape  Hattcras  and  Boston,  both  inclvsire,  in  Charterers'  option. 

5.  Payment  of  said  hire  to  be  made  In  New  York  In  cash  [at  the  current  short  sight  rate  of  Exchange 
or  in  approved  Bankers'  sight  bills  on  London,  at  Owners'  option,  semi-)  monthly,  in  advance  and 
for  the  last  half  month  or  part  of  same  the  approximate  amount  of  hire,  and  should  same  not  cover 
the  actual  time,  hire  Is  to  be  paid  for  the  balance  day  by  day.  as  It  becomes  due.  If  so  required  by 
Owners,  unless  bank  guarantee  or  deposit  Is  made  by  the  Charterers,  otherwise  falling  the  punctual  .and 
regular  payment  of  the  hire,  or  bank  iniarantee.  or  any  breach  of  the  Charter  Party  a.1  herein  .speciiled 
theOwner3,shallbe.itlli)erty  to  withdraw  the  vessel  from  the  service  of  the  f'hartere'rs.  without  prejudice 
to  any  claim  they  (the  Owners)  may  otherwise  have  on  the  Ch.irterers  in  pursuarice  of  this  charter 
Delivery  to  count  from  7  a.  m.  on  the  working  day  following  that  on  which  written  notice  has  been 
given  before  4  p.  m.,  but  If  required  by  Charterers.  loadina  to  commence  at  once,  such  time  used 
to  count  as  hire. 

6.  That  the  cargo  or  cargoes  be  laden  and /or  discharged  in  any  dock  or  at  any  wharf  or  place  that 
the  Charterers  or  their  Agents  may  direct,  provided  the  Steamer  can  always  safely  He  afloat  at  any  time 
of  tide,  except  at  such  places  where  it  Is  ciMtomary  for  similar  slae  steamers  to  .safely  lie  aground 

7.  That  the  whole  reach  of  the  Ve.ssel's  Holds,  Decks,  and  usual  places  of  loading  and  accommo- 
dations of  the  Ship  (not  more  than  she  can  rea.sonably  stow  and  carry),  shall  be  at  the  Charterers' 
disposal,  reserving  only  proper  and  sufflclent  space  for  Ship's  officers,  crew,  tackle,  apparel,  furnltm-e 
provisions,  stores  and  fuel.  " 

8.  That  the  Captain  shall  prosecute  his  voyages  with  the  utmost  de-spatch.  and  shall  render  all 
customary  assl=:tance  with  Ship's  crew  and  boats.  The  Captain  (although  appointed  by  the 
Owners),  shall  be  under  the  orders  and  direction  of  the  Charterers  as  regards  employment  or  agency; 
and  Charterers  are  to  load,  stow,  and  trim  the  cargo  at  their  expense  under  the  iupervislon  of  the 
Captain,  who  Is  to  sign  Bills  of  Lading  for  cargo  as  presented.  In  conformity  with  Mates'  or  Tally 
Clerks'  receipts.  Owners  to  give  Time  Charterers  the  benefit  of  their  Protection  and  Indemnity 
Club  Insurance*  to  the  same  extent  that  Owners  themselves  would  have  been  protected,  and  In  cs.se 
of  shortage  or  damage  to  cargo.  Charterera  to  bear  the  franchise  according  to  the  Club  rules,  which 
Owne™  would  have  otherwise  borne. 

9.  That  If  the  Ch.arterers  shall  have  reason  to  be  dissatisfied  with  the  conduct  of  the  Captain, 
Officers,  or  Engineers,  the  Owners  shall  on  receiving  particulars  of  the  complaint.  Investigate  the 
same,  and.  If  necessary,  make  a  change  in  the  appointments. 

10.  That  the  Charterers  shall  have  permission  to  appoint  a  Supercargo,  who  shall  accompany  the 
Bteamfer  and  see  that  voyages  are  prosecuted  with  the  utmost  despatch.  He  Is  to  be  fumlaned.  free 
of  charge,  with  flrst-class  accommodations,  and  same  fare  as  provided  for  Captain's  table.  Provided. 
Charterers  do  not  use  the  Supercargo  privilege,  owners  to  victual  Pilots.  Tally  Clerki,  Stevedore's 
Foreman.  Customs  Officers,  etc..  as  customary,  free,  but  If  Supercargo  privilege  Is  used.  Charterers 
to  pay  victualing  of  Pilots.  Tally  Clerks,  etc.,  at  the  rate  of  25c.  per  meal. 

11.  That  the  Master  shall  be  furnished  from  time  to  time  with  all  requisite  instn:ctIons  and  sailing 
directions,  and  shall  keep  a  full  and  correct  Log  of  the  voyage  or  voyage*,  which  are  to  be  patent 
to  the  Charterers  or  Agents,  and  to  furnish  the  Charterers,  their  Agents  or  Supercargo,  when  required, 
a  true  dally  copy  of  Logs,  showing  the  course  of  steamer  and  distance  rim  and  the  consumption  of  coal. 

12.  That  the  Master  shall  use  diligence  In  caring  for  the  ventilation  of  the  cargo. 

13.  (That  the  Charterers  shall  have  the  option  of  continuing  this  charter  for  a  further  period  olj 

[on  giving  notice  thereof  to  the  Owners  or  their  Agents]   .  . .  . .  .' .' . .' .' . .' .' .' .' .' .' .' .' .' .'  .'[dayg  previoiis  to 

the  expiration  of  the  first  named  term,  or  any  declared  option.] 

14.  That  If  required  by  Charterers,  time  not  to  commence  before  SSth  April,  1916  and  should 
Steamer  not  be  ready  for  delivery  on  or  before  S!>th  May  next.  Charterers  or  their  Agents  to  hava 
the  option  of  cancelling  this  Charier  at  any  time  not  later  than  the  day  of  Steamer's  readiness. 

15.  That  in  the  event  of  the  loss  of  time  from  deficiency  of  men  or  stores.  Are.  breakdown  or  damages 
to  hull,  machinery  or  equipment,  grounding,  detention  by  average  accidents  to  ship  or  cargo,  dry- 
fiocklng  for  the  purpose  of  exiimlnation  or  painting  bottom,  or  bv  anv  other  cause  preventing  the  full 
working  of  the  vessel  for  more  than  24  consecutive  hours  the  payment  of  hire  shall  cease  for  the  time 
thereby  lost:  and  if  upon  the  voyage  the  speed  be  reduced  bv  defect  In  or  breakdown  of  any  part  of 
her  hull,  machinery  or  equipment,  the  time  so  lost,  and  the  cost  of  anv  extra  coal  consumed  in  conse- 
quence thereof,  [and  all  extra  expenses]  shall  be  deducted  from  the  hire. 

16.  That  should  the  Vessel  be  lost,  money  paid  in  advance  and  not  earned  (reckoning  from  the 
flate  of  loss  or  being  last  heard  of)  shall  be  returned  to  the  Charterers  at  once.  The  act  of  God. 
enemles.lflre.  restraint  of  Princes.  Rulers  and  People  and  ail  dangers  and  accidents  of  the  Seas.  Rivers, 
Machinery.  Boilers  and  Steam  Navigation,  and  errors  of  Navigation  throughout  this  Charter  Party, 
always  mutually  excepted. 

17.  That  .should  any  dispute  arise  between  Owners  and  the  Charterers,  the  matter  In  dispute  shall 
be  referred  to  three  persons  at  New  York,  one  to  be  appointed  by  each  of  the  parties  hereto,  and  the 
third  by  the  two  so  chosen:  their  decision  or  that  of  any  two  of  them,  shall  be  final,  and  for  the  purpose 
of  enforcing  any  award,  this  agreement  may  be  made  a  rule  of  the  Court. 

18.  That  the  Owners  shall  have  a  Hen  upon  all  cargoes,  and  all  sub-freights  for  any  amounts  due 
under  this  Charter,  and  the  Charterers  to  have  a  Hen  on  the  Ship  for  aU  moneys  paid  In  advance 
and  not  earned,  and  any  overpaid  hire  or  excess  deposit  to  be  returned  at  once. 


196       OCEAN  STFAMSHIP  TRAFFIC  MANAGEMENT 

FORM  62. — NEW  YORK  Produce  Exchanqb  Time  Chartbb  Partt  iContinued) 

19.  That  all  derelicts  and  salvage  shall  be  for  Owners'  and  Charterers'  equal  benefit  after  deducting 
Owners'  and  Clharterers'  expenses  and  Crews'  proportion.  General  average,  H  any,  to  be  accordlnR 
to  York-Antwerp  Uules,   1!S!)0. 

If  the  Owners  of  the  ship  shall  have  exercised  due  diligence  to  make  said  ship  In  all  respects  sea- 
worthy, and  properly  nmunod,  equipped  and  supplied.  It  Is  hereby  agreed  that  In  ca.se  of  danger,  damage 
or  disaster  resulting  from  fault  or  negligence  of  the  pilot,  master  or  crew.  In  the  navigation  or  manage- 
ment of  the  ship,  or  from  latent  or  other  defects,  or  unseaworthiness  of  the  ship,  whether  existing  at 
time  of  shipment  or  at  the  beginning  of  t)hc  voyage,  but  not  discoverable  by  due  diligence,  the 
Consignees  or  Owners  of  the  cargo  shall  not  be  exempted  from  liability  for  contribution  In  General 
Average,  or  for  any  special  charges  Incurred,  but  with  the  Shipowner,  shall  contribute  In  General 
Average,  .ind  shall  pay  such  special  charges,  as  If  such  danger,  damage  or  disaster  had  not  resulted 
from  such  fnult,  negligence,  latent  or  other  defect,  or  unseaworthiness. 

20.  C^oais  used  by  steamer  while  ofT  hire,  also  for  cooking,  condensing  water  for  crew's  use,  or  for 
grates  and  stoves  to  be  agreed  to  as  to  quantity,  and  the  cost  of  replacing  same,  to  be  allowed 
by  Owners. 

21.  [That  as  the  Steamer  may  be  from  time  to  time  employed  In  tropical  waters  during  the  term  of 
this  Charter,  Steamer  is  to  be  docked,  bottom  cleaned  and  painted  whenever  Charterers  and  Master 
think  necessary,  at  least  once  In  every  six  months,  reckoning  from  time  of  last  painting,  and  payment 
of  the  hire  to  be  suspended  until  she  is  again  In  proper  state  for  the  service.) 

22.  Owners  shall  provide  gear  (for  all  derricks)  capable  of  handling  lifts  up  to  three  tons,  and 
maintain  the  gear  of  the  ship  as  fitted,  also  provide  ropes,  fails,  slings  and  blocks;  but  gear  for  heavier 
lifts  shall  be  for  Charterers'  account.  Owners  also  to  provide  lanterns  and  oil  for  nightwork,  and 
steamer  to  give  use  of  electric  light,  when  so  fitted.  The  Charterers  to  have  the  use  of  any  gear  on 
board  the  steamer. 

23.  Steamer  to  work  night  and  day.  If  required  by  Charterers,  and  all  steam  winches  to  be  at 
Charterers'  disi)osal  during  loading  and  discharging:  steamer  to  provide  men  to  work  same  day  and 
night,  as  required.  Charterers  agreeing  to  pay  winchmen,  deck  hands  and  donkeymen  for  work  done 
between  6  p.  m.  and  6  a.  m.  and  on  Sundays,  at  the  rate  of  ISc.  per  hour  for  winch  operators  and  deck- 
hands, and  20c.  per  hour  for  Donkeymen.  If  the  rules  of  the  port,  or  labor  unions,  prevent  crew  from 
driving  winches,  shore  winchmen  to  be  paid  by  Charterers.  In  the  event  of  short  steam,  or  a  disabled 
wlncli,  or  winches.  Owners  to  pay  for  shore  engine,  or  engines.  In  lieu  thereof,  If  reqiilred,  and. pay 
any  loss  of  time  occasioned  thereby. 

24.  It  Is  also  mutually  agreed  that  this  Charter  Is  subject  to  all  the  terms  and  provisions  of  and 
all  the  exemptions  from  liability  contained  In  the  Act  of  Congress  of  the  United  States  approved  on 
the  13th  day  of  February,  1893,  and  entitled  "An  Act  relating  to  Navigation  of  Vessels,  etc.  »nd  also 
subject  to  the  rules  governing  the  Steamship  Trade  of  the  New  York  Produce  Exchange. 

2j.  Nothing  herein  stated  is  to  be  construed  as  a  demise  of  the  Steamer  to  the  Time  Charterers. 
The  Owners  to  remain  responsible  for  the  navigation  of  the  Steamer,  Insurance,  crew,  and  all  other 
matters,   same  as  when  trading  for  their  own  account. 

26.  A  commission  of  Five  per  cent,  upon  the  gross  amount  of  this  Charter,  payable  by  the  Steam- 
ship and  Owners  due  to   AND  COMPANY,  upon 

(the  signing  hereof]  hire  as  earned  Steamship  lost  or  not  lost,  and  also  upon  any  continuation  or 
extension  of  this  Charter  or  on  sale  of  Vessel. 

27.  An  address  commission  of  2H  per  cent,  payable  to  Messrs dt  Co. 

28.  Penalty  for  non-performance  of  this  Contract,  estimated  amount  of  damages. 


Agents. 

By  cable  authority  from 

dated  at 19 


For'and  on  behalf  of  the 

by  cable  authority  of  Messrs 

&  Co.,  N.  Y. 

(.Signed)     A  Co., 

As  Agents 
Witness  to  thelslgnature  of 

per  pro &  Co., 

(Signed) 29/4/16 

We  Herebt  Ckbtift  the  above  to  be  altrue  copy  of  the  original  Charter  Party  In  our  possession. 

BroKers 

Note: 

TIME   CHARTER— SPECIALTCLAUSE. 
It  is  a  condition  of  this  charter  and  the  charterers  undertake  that: — 

(1)  The  ship  shall  be  employed  only  in  such  trades  and  employments  and  shall  carry  only  sucll 
goods,  persons  and  things  as  are  lawful  for  a  British  ship  and  are  not  for  the  time  belag  prohibited 
by  ills  Majesty's  Government. 

(2j  The  ship  shall  not  be  used  nor  be  documented  In  any  such  way  nor  shall  she  carry  any  such 
cargo  or  any  cargo  so  documented  as  would  expose  her  to  seizure  or  condemnation  by  Great  Britain 
or  any  of  her  Allies. 

(3)  There  shall  not  be  any  breach  of  any  of  the  warranties  which  are  now  or  may  during  the  con- 
tinuance of  this  charter  be  contained  In  the  policies  or  contracts  of  Insurance  of  the  ship  with  the  War 
Risks  Insurance  Association  in  which  the  Ship  isfentered.  The  warranties  now  contained  la  sucll 
policies  are  as  follows: — 

(a)  That  the  ship  shall  be  employed  In  commercial  trading. 

(b)  That  the  ship  shall  not  engage  In  any  trade  prohibited  by  His  Majesty's  Government  or  by 
the  Committee  of  the  Association,  and  shall  comply  as  far  as  possible,  with  the  orders  of  Hla 
Majesty's  Government  and  the  directions  of  the  Committee  as  to  sailing,  routes,  ports  of  call, 
stoppages,  arrival  and  otherwise. 

(c)  That  the  ship  shall  leave  an  enemy's  port  within  the  days  of  grace  allowed  by  the  enemy 
and  shall  comply  with  the  terms  of  any  pass  granted  by  the  enemy. 

(d)  That  the  ship  shall  not  enter  or  leave,  or  attempt  to  enter  or  leave,  any  port  which  Is  known 
to  be  blockaded  by  the  enemy. 

Upon  breach  of  any  of  the  conditions  and  undertakings  mentioned  In  this  clause,  the  owners  shall 
have  the  right  at  any  time  to  withdraw  the  ship  from  the  service  of  the  charterers,  without  prejudice 
to  any  claim  they,  the  owners,  may  have  on  the  charterers  In  pursuance  or  for  breach  of  this  charter. 

While  the  charter  party  reproduced  in  Form  61a,  and  analyzed 
above,  is  typical  of  the  time  charters  in  use  at  American  ports, 
it  varies  sufficiently  from  others  to  emphasize  the  need  of  read- 


TIME  CHARTER  PARTIES  197 

ing  the  contents  of  time  charters  before  signature  is  attached. 
The  time  charter  approved  by  the  New  York  Produce  Exchange 
is  reproduced  in  Form  62  for  purposes  of  comparison.  It  differs 
from  the  charters  shown  in  Form  61a  and  Form  61b,  chiefly  in  its 
details,  yet  some  of  these  details  are  of  importance.  The  clause 
with  respect  to  the  appointment  of  a  super  cargo,  for  example, 
and  those  governing  the  loss  of  time  due  to  deficiency  of  men  or 
stores,  fire,  breakdown  of  machinery,  etc.,  the  performance  of 
night  work,  the  application  of  the  shipping  rules  of  the  New 
York  Produce  Exchange,  signature  of  bills  of  lading  by  captain 
and  the  rules  governing  payment  of  hire  differ  from  the  cor- 
responding clauses  of  the  former  charters. 

Government  Time  Charters 

During  the  war,  when  the  Government  acquired  direct  con- 
trol over  a  large  number  of  vessels,  the  Shipping  Board  adopted 
a  number  of  standardized  time  charters.  Many  privately  owned 
vessels  were  requisitioned  by  the  Board  under  the  requisition 
charter  reproduced  in  Form  63.  It  states  that  the  vessel  de- 
scribed in  the  charter  has  been  requisitioned  subject  to  three 
conditions:  (1)  that  the  terms  and  conditions  under  which  the 
requisitioned  vessel  is  to  be  operated  shall  be  those  contained 
in  either  the  "time  form"  or  the  "bare-boat"  form  of  the  Ship- 
ping Board  at  the  option  of  the  United  States ;  (2)  that  the 
owner  accepts  these  terms  and  conditions  in  full  satisfaction 
of  claims;  and  (3)  that  the  United  States  may  cancel  the  requi- 
sition charter  on  giving  a  written  notice  of  five  days  when  the 
"vessel  is  in  a  United  States  port." 

The  time  form  provided  for  the  operation  of  such  requisi- 
tioned vessels  differs  from  the  commercial  time  charters  ordi- 
narily in  use  principally  in  the  following  respects:  (1)  The 
period  of  time  subject  to  cancellation  as  stated  above  is  Hmited 
to  six  months  after  arrival  of  the  vessel  at  an  American  port 
after  peace  is  declared,  unless  it  is  required  for  Government 
purposes.  (2)  The  United  States  is  to  provide  any  special  equip- 
ment in  addition  to  "that  required  for  the  vessel's  previous  usual 
service."  (3)  The  crew  shall  so  far  as  practicable  consist  of 
American  citizens,  the  citizens  or  subjects  of  enemy  or  ally  of 
enemy  nations  being  excluded.     (4)   The  charter  rate  shall  be 


198       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

on  a  monthly  basis  determined  from  time  to  time  by  the  United 
States  Shipping  Board,  the  owner,  however,  having  the  option 
on  canceHng  the  requisition  charter  if  the  rate  is  fixed  below 
that  in  effect  on  the  date  of  requisition.  In  case  the  vessel 
loses  time  because  of  deficiency  in  crew  or  stores  or  other  causes 
similar  to  those  listed  in  a  commercial  time  charter,  the  payment 
provided  for  is  to  be  reduced  to  one-half  until  the  vessel  is  again 
in  an  efficient  state.  (5)  The  United  States  agrees  to  reimburse 
the  owner  for  any  proper  increases  in  wages  and  bonuses  over 
the  standard  prevailing  Aug.  1,  1917.  (6)  The  United  States 
agrees  to  bear  the  cost  of  insuring  against  war  risks  and  spe- 
cial risks  due  to  the  use  of  the  vessel  elsewhere  than  on  its 
usual  voyages.  The  Government,  moreover,  assumes  liability  for 
marine  losses  in  case  the  vessel  becomes  unseaworthy  for  rea- 
sons other  than  the  neglect  or  misconduct  of  the  owner  or  his 
agents;  and  upon  giving  a  notice  of  five  days  the  Government 
may  assume  all  marine  risks.  The  insurance  clause  also  pro- 
vides that  losses  are  presumed  to  be  due  to  war  risk  if  there  is 
no  evidence  to  the  contrary ;  and  the  owner  is  required  to  in- 
sure against  "the  usual  protection  and  indemnity  risks  for  the 
full  protection  of  the  owner  and  the  United  States,  the  expense 
thereof  to  be  borne  50  per  cent,  by  the  owner  and  50  per  cent, 
by  the  United  States."  (7)  The  owners  of  passenger-carrying 
vessels  operating  under  the  time  form  are  required  to  operate 
and  maintain  the  salon  mess,  and  if  troops  are  carried  a  troop 
mess  in  which  the  meals  are  the  equivalent  of  the  regidar  United 
States  Army  garrison  ration,  the  United  States  in  both  cases 
being  required  to  pay  for  these  services  "at  reasonable  rates  to 
be  fixed  by  the  United  States."  (8)  The  vessel  is  to  be  subject 
to  all  the  laws  and  regulations  governing  merchant  vessels  un- 
less it  is  taken  over  into  the  service  of  the  War  and  Navy  De- 
partment, when  it  shall  have  the  status  of  a  public  ship  and  its 
officers  and  crew  shall  become  the  immediate  employees  and 
agents  of  and  be  absolutely  under  the  control  of  the  United 
States.  Most  requisitioned  vessels  were  turned  over  to  their 
owners  or  agents  for  operation  under  this  time  charter. 

Upon  five  days'  written  notice,  however,  any  requisitioned 
vessel  may  be  taken  over  for  operation  by  the  United  States 
under  what  is  known  as  the  "bare-boat"  form.  Under  this 
charter  form  the  vessel  is  to  be  outfitted  and  equipped  by  the 


TIME  CHARTER  PARTIES  199 

owner  and  also  be  put  into  seaworthy  condition  by  him,  but 
the  United  States  undertakes  "at  its  sole  expense  (to)  man, 
operate,  victual  and  supply  the  vessel" ;  also  to  pay  all  port 
charges,  pilotages  and  other  costs  incident  to  the  use  and  opera- 
tion of  the  vessel;  and  to  assume  all  war,  marine  and  other 
risks.  Under  the  bare-boat  form  the  owner  receives  pay  for 
the  use  of  his  vessel  at  a  monthly  rate  per  deadweight  ton,  but 
the  rate  is  lower  than  that  paid  under  the  regular  time  form 
as  the  increased  services  and  risks  assumed  by  the  Government 
are  taken  into  account. 


CODE  WORDS: 

Requisition  Charter — Retra  U.  S.  S.  B.  CHARTER 

Time  Form — Merof  form  no.  2 

Bare  Boat  Form — Erab 

UNITED  STATES  OF  AMERICA 

REQUISITION  CHARTER 


Name  of  Steamship 

Type  of  Steamship 

D.  W.  Tonnage 

Gross  Tonnage 

Passenger  capacity 

Knots  per  hour 

Date  on  which  vessel  entered  into  pay 

TMs  Requisition  Charier  made  and  concluded  upon  in  the  District  of  Columbia  the  . . .  .day  of     1 

1917    between of 2 

of  owner  of  the  good  American   Screw  Steamship     3 

of    of    tons   gross   register     4 

and   tons  net  register,  built  in  havlng^nglnos  of 5 

nominal  horsepower,  provided  with  proper  certificate  for  hull  and  machinery,  and  classed at     8 

of  about cubic  feet  capacity  and tons  dead-weight     7 

capacity,  summer  freeboard,  inclusive  of  permanent  bunkers,  capable  of  making  an  average  voyage     8 

speed  when  loaded  of linots  an  hour,  under  ordinary  conditions,  on  a  consumption  of     9 

about tons  of  coal,  or  about barrels  of  oU  per  2i  hours;  and  the  United  10 

States  of  America,  through  the  United  States  Shipping  Board—  U 

WITNESSETH:  12 

Whebeas,  by  Requisition  Order,  dated 1917.  pursuant  to  the  Urgent  Deficiency  Act  13 

15  June.  1917,  and  the  President's  Executive  Order  11  July,  1917,  the  United  States  has  requl-  14 

sitioned  the  use  of  the  steamship  and  the  steamship  has  been  delivered  15 

into  possession  of  the  United  States  pursuant  to  the  RequiBitlon;  and  19 

Whereas,  it  la  fleelred  by  the  United  States  and  by  the  owner  to  fix  the  compensation  (herein-  17 
after  CAlled  hire)  which  the  United  States  shall  pay  to  the  owner  for  use  of  the  steamship  so  requl-  18 
Bitioned,  and  to  deflne  by  agreement  the  rights  and  duties  of  the  United  States  and  of  the  owner  19 
with  respect  to  the  operation  of  the  vessel  under  the  Requisition,  and  with  respect  to  other  matters  20 
tn  conneetlon  therewith:  21 

KOW.  THEREFORE,  IT  IS  AGREED  AS  FOLLOWS:  22 

Fir$t.  The  ternas  and  conditions  under  which  the  vessel  is  to  be  operated  shall  be  those  con-  23 
tained  Iti  the  "Time  Form"  hereto  annexed;  provided,  however,  thr.t  at  the  time  of  the  Requisition  24 
or  at  any  time  thereafter,  on  Ave  days'  written  notice,  the  United  States  may  operate  the  vessel  25 
under  the  terms  and  conditions  contstned  in  the  "Bare  Boat  Form"  hereto  annexed,  such  operation  28 
to  begin. when  the  steamship  is  In  a  United  States  port.  27 

Second.  In  consideration  of  the  compensation  provided  and  the  other  obligations  assumed  by  28 
the  United  States  hereunder,  the  owner  accepts  this  Requisition  Charter  in  full  satisf.ictlon  of  any  29 
and  all  claims  he  has  or  may  haviy  against  the  United  States  arising  out  of  the  Requisition  and  .30 
accepts  the  compensation  herein  provided  for  as  the  Just  compensation  required  by  law;  provided,  31 
however,  that  the  acceptance  of  this  Requisition  Charter  shall  be  without  prejudice  to  the  claim,  32 
If  any,  the  owner  may  have  against  the  I'nlted  States  arising  out  of  recoveries  against  the  owner  33 
by  third  parties  on  the  vessel's  commitments.  34 

Third.  Upon  giving  five  days'  written  notice  to  the  owner  the  United  States  may  at  any  tlme,35 
when  the  vessel  Is  In  a  United  States  port,  cancel  this  Requisition  Charter  without  prejudice  to  36 
the  accrued  rights  of  either  party.  37 

Witness  to  the  signature  of  


By 

Witness  to  the  signature  of —  The  United  States  Shipping  Board, 

By 

19284 17 

FOBU  63. — GOVERNMENT  REQUISITION  CHARTER 


200       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

When  a  requisitioned  vessel  is  chartered,  not  to  its  owner  but 
to  another  vessel  operator,  a  different  form  of  charter  party  is 
used  by  the  Shipping  Board.  It  is  agreed  that  the  vessel  may 
not  be  sub-chartered  without  the  written  consent  of  the  United 
States;  that  the  charterer  is  to  provide  and  pay  for  all  items 
and  assume  all  the  risks  and  liability  for  which  the  United  States 
is  obligated  under  the  requisition  charter;  that  all  settlements 
with  the  owner  are  to  be  made  by  the  United  States,  but  the 
charterer  is  to  reimburse  the  United  States  within  thirty  days 
after  vouchers  are  presented;  that  in  case  the  vessel  is  lost  and 
the  United  States  under  the  requisition  charter  agrees  to  de- 
liver another  vessel  to  the  owner  or  obtain  a  building  contract  for 
him,  the  charterer  is  to  pay  the  United  States  the  value  of  the 
ship  with  interest  at  6  per  cent,  per  year  beginning  thirty  days 
after  date  of  loss ;  and  that  the  charterer  is  to  pay  the  requisi- 
tion rate  fixed  by  the  Shipping  Board  for  a  vessel  of  correspond- 
ing description,  and  also  an  amount  to  cover  overhead  and  other 
expenses  borne  by  the  United  States.  The  United  States  under- 
takes that  all  the  duties  and  obligations  of  the  owner  under  the 
requisition  charter  may  be  carried  out.  This  charter  may  be 
determined  either  by  the  United  States  or  the  charterer  upon 
giving  a  notice  of  thirty  days,  the  vessel  then  to  be  delivered  at 
a  United  States  port  north  of  Hatteras  in  "as  good  order  and 
condition  as  when  received,  ordinary  wear  and  tear  and  dam- 
age due  to  the  operation  of  risks  assumed  by  the  owner  under 
the  requisitioned  charter  excepted  and  free  from  all  liens  and 
claims  for  which  the  (charterer)   is  responsible." 

When  the  United  States  Shipping  Board  charters  a  vessel, 
not  under  requisition,  still  a  different  form  of  charter  is  exe- 
cuted. Since  the  element  of  compulsion  is  not  dominant,  condi- 
tions of  this  charter  in  such  a  transaction  are  similar  to  those 
of  the  usual  commercial  time  charters,  although  they  differ  from 
the  latter  in  certain  respects.  The  Shipping  Board  agrees  to 
assume  loss  or  damage  due  to  the  operation  of  war  risks,  and 
it  is  given  the  privilege  to  equip  the  vessel  with  guns.  The 
owner's  lien  for  amounts  due  is  restricted  to  "cargoes  not  owned 
by  the  United  States  and  all  sub-freight,"  the  Shipping  Board, 
however,  having  a  lien  on  the  ship  for  "all  monies  paid  in  ad- 
vance and  not  earned,  and  for  any  average  claims  against  ship. 


TIME  CHARTER  PARTIES  201 

and  any  overpaid  hire  or  excess  deposit  shall  be  returned  at 
once." 

Government  charters  also  include  forms  used  for  special  types 
of  vessels  or  to  meet  special  conditions.  There  is,  for  example, 
a  sailing  vessel  time  charter;  a  special  bare-boat  charter  to 
cover  vessels  chartered  by  the  Shipping  Board  to  the  Emergency 
Fleet  Corporation ;  a  rerequisition  charter  for  tank  steamers  with 
an  attached  bare-boat  form;  a  tank  steamship  requisition  agree- 
ment and  a  supplemental  requisition  agreement  for  tank  steam- 
ers; an  agreement  stating  the  "terms  of  employment  of  Dutch 
vessels" ;  a  uniform  charter  for  Swedish  steamers,  and  a  "requisi- 
tion charter  for  tugs,"  with  attached  time  and  bare-boat  forms. 


CHAPTER  XIII 
TRIP  OR  VOYAGE  CHARTERS 

When  an  ocean  vessel  is  chartered  for  a  single  voyage  or 
trip,  a  "trip  charter  party"  is  signed  by  the  owner  and  charterer 
or  their  agents.  The  many  different  trip  forms  in  use  at  Ameri- 
can ports  may  be  grouped  into  three  fundamental  classes:  (1) 
the  gross  form,  (2)  the  net  form,  (3)  modified  gross  or  net 
forms. 

Gross  Form  Charter  Parties 

The  distinctive  feature  of  the  gross  form  charter  is  that  the 
charter  rate  paid  by  the  charterer  to  the  owner  covers  the 
entire  transportation  service,  including  loading  at  shipping  point 
and  discharging  at  destination  and  also  port  charges.  It  re- 
quires the  shipper  to  deliver  his  cargo  where  specified  in  the 
charter  usually  alongside  the  vessel,  and  the  consignee  to  re- 
ceive it  as  specified;  but  within  these  limits  the  charter  rate 
named  in  the  gross  form  covers  port  charges  and  services  as 
well  as  port  to  port  transportation  services  and  costs. 

The  charters  reproduced  in  Forms  64,  65  and  66  indicate  the 
clauses  usually  contained  in  gross  form  charters  and  also  make 
it  clear  that  the  provisions  or  conditions  imposed  in  these  clauses 
are  subject  to  variations.  As  in  case  of  time  charters  the  man- 
ner in  which  the  vessel  is  described  or  identified  is  not  uniform, 
the  full  cargo  berth  terms  grain  charter  shown  in  Form  65 
specifically  requiring  a  statement  of  the  vessel's  classification 
under  the  rules  of  either  British  Lloyds  or  the  French  Bureau 
of  Veritas  and  of  its  capacity  expressed  in  terms  of  quarters  of 
heavy  grain,  10  per  cent,  more  or  less  weight  capacity  and  of 
cubic  feet  capacity  for  cargo.  The  berth  terms  grain  charter 
moreover  provides  a  range  of  American  and  European  ports, 
any  one  of  the  former  of  which  may  be  selected  by  the  charterer 
and  ordered  in  the  bill  of  lading  as  the  port  of  shipment  and 
any  one  of  the  latter  as  the  port  of  discharge  upon  payment 

202 


TRIP  OR  VOYAGE  CHARTERS  203 

of  the  agreed  charter  rates  or  amount  of  freight,  while  the 
general  trip  charter  shown  in  Form  64  and  the  coal  charter  re- 
produced in  Form  66  leave  blank  space  into  which  the  ports  of 
shipment  and  discharge  are  inserted  when  the  charter  arrange- 
ment is  made. 

FoRU  64. — General  Cargo  Gross  Form  Charter  Party 

THE  GLOBE  LINE 

GASTON,  WILLIAMS  &  WIGMORE  STEAMSHIP  CORPORATION 
39  BROADWAY,  NEW  YORK 

THIS  CHARTER  PARTY,  made  and  concluded  upon  In  the  Clty^of  NEW  YORK,  the 

flay  of in  the  year  of  our  Lord  one  thousand  nine  hundred  and 

between Agents  for  Owners  of 

the  good called  the 

of   classed   of  the 

measurement    of    tons    net    register,    or    thereabouts, 

now. of    the    first    part, 

and     of    the    second    part. 

WITNESSETH  that  the  Bald  party  of  the  first  part  agrees  on  the  freighting  and  chartering  of  the 

eald (with  the  exception  of  the  docli.  cabin  and  necessary 

room  for  the  crew,  and  the  storage  of  provisions,  sails,  fuel  and  cables),  or  safHcient  room  for  the 
cargo  hereinafter  mentioned,  unto  said  party  of  the  second  part  for  a  voyage  from 

or  so  v^ttLT  thereunto  as  she  may  safely  get  and  there  deliver  her  cargo  on  the  terms  following: 

1.  The  said   shall  be  tight,  staunch,  strong  and  every  way 

fitted  for  such  a  voyage,  and  receive  on  board  during  the  aforesaid  voyage,  the  merchandise  here- 
inafter mentioned;  and  no  goods  or  merchandise  shall  be  laden  on  board  otherwise  than  from  the  said 
party  of  the  second  part  or  Agent. 

2.  The  said  party  of  the  second  part  doth  engage  to  provide  and  furnish  to  said 

a  full  and  complete  CARGO  OF   

and  to  pay  to  said  party  of  the  first  part,  or  Agent,  for  use  of  said  vessel  during  the  voyage  aforesaid. 

3.  The  act  of  God,  restraint  of  Princes,  Rulers  and  People,  fire  and  all  and  every  other  dangers 
and  accidents  of  the  seas,  rivers  and  steam  navigation  of  what  nature  and  kind  soever,  riots,  and 
strikes  of  pitmen,  and  all  and  every  other  unavoidable  hindrances  which  may  prevent  the  loading 
and  delivery  during  the  said  voyage,  always  mutually  excepted. 

4.  It  Is  agreed  that  the  lay  days  for  loading  and  discharging  shall  be  as  follows: 

Consignees  to  receive  cargo  at  port  of  discharge  at  the  rate  of  not  less  than 

tons  per  running  day.  Sundays  and  Legal  Holidays  excepted.  Lay  days  for  loading  and/or  dis- 
charging to  commence  from  the  time  the  steamer   Is  ready  to  load 

and/or  discharge  cargo,!;and  the  master  to  give  written  notice  of  readiness. 


5.  Also,  that  for  each  and  every  day's  detention  by  default  of  said  party  of  the  second  part,  or 

Agent U.  S.  Gold  per  day.  day  by  day,  shall  be  paid  by  said  party  of  the 

second  part,  or  Agent,  to  said  party  of  the  flnst  part,  or  Agent. 

6.  Bills  of  Lading  to  be  signed  without  prejudice  to  this  Charter.lbut  at  not  less  than  chartered 
rates. 

7.  It  Is  mutually  agreed  that  the  Charterers'  liability  under  this  Charter  shall  cease  when  the 

cargo  Is  on  board  and  BUls  of  Lading  signed.     The  Master  &  Owners  of  the 

shall  have  an  absolute  lien  upon  the  cargo  for  all  freight,  dead  freight,  and  demurrage,  and  all  and  every 
other  sum  or  sums  of  money  which  may  become  due  the  steamer  under  this  Charter. 

8.  It  is  also  mutually  agreed  that  this  shipment  is  subject  to  all  the  terms  and  provisions  of  and 
all  the  exemptions  from  liability  contained  to  the  Act  of  Congress  of  the  I'nlted  States  entitled 
"An  Act  relating  to  Navigation  of  Vessels,  etc.,"  approved  on  the  13th  day  of  February.  1893.  Sea- 
worthiness warranted  only  so  far  as  ordinary  care  can  provide,  and  owners  are  not  liable  for  loss, 
detention,  or  damage  arising  from  latent  defects  existing  at  the  time  of  sailing.  If  the  owner  of  the 
ship  s*-r^1I  have  exercised  due  diligence  to  make  said  .=;hlp  In  all  respects  seaworthy,  and  properly 
manneti.  equipped  and  supplied.  It  i,s  hereby  agreed  that  In  case  of  danger,  damage  or  disaster  resulting 
from  fault  or  negligence  of  the  pilot,  master  or  crew.  In  the  navigation  or  management  of  the  ship 
or  from  latent  or  other  defects,  or  unseaworthiness  of  the  ship,  whether  existing  at  time  of  shipment 
or  at  the  beginning  of  the  voyage,  but  not  discoverable  by  due  diligence,  the  consignees  or  owners 
of  the  cargo  shall  not  be  exempted  from  liability  for  contribution  in  General  Average,  or  for  any  special 
charges  Incurred,  but  with  the  Shipowner,  shall  contribute  in  General  Average,  and  .shall  pay  such 
special  charges,  as  If  such  danger,  damage  or  disaster  had  not  resulted  from  such  fault,  negligence, 
latent  or  other  defect  or  unseaworthiness.  General  Average,  if  any,  to  be  settled  according  to  \  orii- 
Antwerp  rules  of  18SQ. 


204       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

FORM  64. — GENERAL  CARGO  GROSS  FORM  CHARTER  PARTY    (Continued) 

9.     Lay  days  If  required  by  Charterers,  not  to  commcnro    before 191 . . ; 

and  should  the    not  bo  ready  for  cargo  at  her  loadlriR  port  on  or 

before   191 the  (  Imrtcrcrs  or  their  agents  to  have  the  option 

of  cancelling  this  Charter  Party  at  any  time  not  lutor  than  the  day  of readiness. 

10..    to  have  liberty  to  tow  and  to  be  towed  and  to  assist  vessels 

In  all'sltuatlons,  also  to  rail  at  any  port  or  ports  for  coal  and/or  other  supplies. 

11.     The  cargo  or  cargoes  to  be  received  and  delivered  along-side  the 

where  she  can  load  and  discharge,  always  safely  afloat  within  reach  of  her  tackles;  and  lighterage, 
and  also  extra  lighterage,  11  any,  at  the  risk  and  expense  of  the  cargo. 

12 to  be  discharged  at'such  wharf  as  charterers  may  designate, 

where  steamer  may  always  safely,  lie  afloat. 


13.  Funds  for  the  vessel's  ordinary  disbursements  not  to  exceed  one-half  of  the  estimated  freight. 
If  desired  by  the  party  of  the  flr.st  part  or  thuir  Agents,  to  be  advanced  by  the  Charterers  on  account 

of  the  freight  to  the  Master  and  Owners  at  Port  of  Loading.     Paying  per  cent,  to 

cover  Interest,  Insurance  and  commission. 

14.  A  commission  of  Ave  per  cent,  on  the  amount  of  freight  and  demurrage  Is  due  by  the 

and  Owners  on  signing  of  this  Charter  Party,  ship  lost  or  not  lost, 

charter   cancelled    or    not    cancelled,    to 

15.  To  the  true  and  faithful  performance  of  all  and  every  of  the  foregoing  agreements,  we, 
the  said  parties,  do  hereby  bind  ourselves,  our  heirs,  executors,  administrators  and  assigns,  each  to 
the  other  In  the   penal  sum  of  estimated  amounttof  freight. 

IN  WITNESS  WHEREOF,  we  hereunto  set  our  hands,  the  day  and  year  first  above  written. 
SIGNED    IN   THE   PKESENCE   OF 


WE  HEREBY  CERTIFY  that  the  foregoing  is  a  true  and  correct  copy  of  the  original  Charter 
Party  on  flle  In  our  Office. 

GASTON,    WILLIAMS   &    WIGMORE   STEAMSHIP    CORPORATION 


Form  65. — New  York  Berth  Terms  Grain  Charter  Party 
(Pre-war  Conditions) 

New  York  Produce  Exchange.    Approved  Berth  Term  Contract,  for  Full  Cargo  Grain,  of  1897 

BOWRING  &  COMPANY,  SHIP  BROKERS  ^ 

17  STATE_  STREET 

New  York,  June  SOth,  1914. 
MEMORANDUM  OF  AGREEMENT  between  Dominion  Coal  Co.,  Ltd..  Time  Charterers  (Agents 
for  Owners)  of  the  Norwegian  Vessel  "  ALDEN"    of  Bcrocn  of  Z3J,0  tons  net  register,  and  guaranteed 

£6,000  Quarters  of  heavy  grain  10  per  cent.,  more  or  less,  weight  capacity,  and  about 

feet,  cubic  capacity  for  cargo,  classed  [100  A  1,  at  British  Lloyds,  or  3.  3.  1.  1.  at  French  Veritas,] 
First  Class  Norweoian  Veritas,  now  expected  ready  about  July  2nd/Srd  and  Messrs.  Ames  Broots  Co., 
of  Duluth,  Charterers. 

1.  The  Owners  agree  to  let  and  the  Charterers  agree  to  hire  the  said  Vessel  for  a  voyage  from 
Montreal  to  Rotterdam  or  Avonmouth  (New  York,  or  Philadelphia,  or  Baltimore,  or  from  Newport 
News  and/or  Norfolk,  at  Ch.arterers'  option  (orders  for  flrst  Loading  Port  to  be  given  within  twenty- 
four  hours  after  receipt  of  notice  of  Vessel's  arrival  at  Port  of  Call  If  coming  in  ballast,  or  prior  to 
discharge.  If  coming  to  the  United  States  with  cargo)  to  London,  Liverpool,  Glasgow,  Brkstol, 
Avonmouth.  Manchester,  Cardiff,  Plymouth,  Southampton,  Dublin,  Belfast,  Hull.  Leith, 
Newcastle-on-Ttne,  Rotterdam,  Amsterdam,  Antwerp,  Hamburg,  Bremen,  Dunkirk,  or 
Havre]  one  port  only,  as  ordered  on  signing  Bills  of  Lading,  on  being  paid  a  freight  of  two  sMUings 
and  three  pence  (.S/H)  all  In  British  Sterling,  for  each  and  every  quarter  of  4S0  pounds,  English  weight, 
dellvei-ed 

2.  The  Owners  agree  that  the  Vessel  shall  be  tight,  staunch  and  strong,  and  In  every  way  Otted 
for  the  voyage. 

3.  The  Charterers  agree  to  furnish  a  full  and  complete  cargo  of  heavy  grain,  say  wheat  and/or 
corn  and/or  rye.  [but  reserve  the  privilege  of  shipping  a  full  or  a  part  cargo  of  flaxseed,  and/or  barley, 
and/or  oats,  in  which  case  the  Vessel  is  to  receive  same  freight  as  it  she  had  loaded  a  full  and  com- 
plete cargo  of  heavy  grain,  any  saving  In  loading  expenses  to  be  for  Vessel's  benefit.] 

4.  Notification  of  Ves-scl's  readiness  must  be  delivered  at  the  oIHce  of  Charterers,  or  their  Agents, 
at  or  before  4  P.  M.  (or  at  or  before  12  M..  If  on  Saturday),  Vessel  also  havhi?  been  entered  at  the 
Custom  House,  accompanied  by  pass  of  the  Inspector  of  Vessel's  readiness  in  all  compartments,  and 
the  lay-days  will  then  commence  at  7  A.  M.  on  the  next  business  day,  provided  Vessel  Is  at  loading 
place,  as  order'ni.  otherwise  days  to  count  In  accordance  with  the  Rules  governing  at  Port  of  Loading. 
Charterers'  orders  to  move  to  loading  place  must  be  served  on  the  Vessel's  Agents  by  5  o'clock  P.  M., 
(If  on  Saturday  by  12  o'clock  M.)  of  day  of  readiness  or  lay-days  to  begin. 

5.  Vessel  to  haul  to  loading  place  or  plajes.  as  ordered  by  c;harterers,  but  If  ordered  from  her 
first  loading  place,  the  cost  of  this  and  any  subsequent  hauling  to  be  paid  by  Charterers.  (In  case 
the  Vessel  loads  at  Newport  News  and/or  Norfolk,  the  t;harterers  have  the  privilege  of  shifting  the 
Ves.sei  between  Newport  News  and  Norfolk  as  often  as  may  be  required,  they  paying  expenses 
Incurred,  beyond  those  Incurred  by  the  vessel  In  shifting  once  from  her  llrst  to  her  second  Loading 
Port,  and  allowing  Owners  for  time  lost  In  shifting  on  that  account  at  the  rate  of  thirty  pounds  (£30) 
British  Sterling  per  day  or  part  thereof.) 

>  Clauses  In  [  ]  were  omitted  from  the  printed  form;  those  In  italics  were  put  In  with  typewriter. 


TRIP  OR  VOYAGE  CHARTERS  205 

Form  65. — New  York  Berth  Terms  Grain  Charter  Party  (.ContinueO) 
Steamer  to  pay  elevator  charges  at  loading  -port  if  any. 

6.  Charterers,  or  their  Agents,  shall  have  the  option  of  cancelling  this  Charter  Party  If  the 
Vessel  be  not  ready  to  receive  cargo  on  or  before  the  15tti  July,  191  i.  Such  readiness  shall  Include 
the  arrival  of  the  Vessel  at  the  Loading  Port,  entry  thereof  at  the  Custom  House,  and  all  compart- 
ments ready  to  receive  cargo  as  shall  be  shown  by  the  Master's  written  notification,  accompanied 
by  Underwriters'  Surveyor's  pass  to  that  effect,  which  must  be  presented  at  the  office  of  the 
Charterers,  or  their  Agents,  at  or  before  4  P.  M.,  or  If  on  Saturday  before  12  o'clock  noon  of  said 
day.  This  option  to  cancel  shall  be  exercised  not  later  than  the  presentation  of  the  said  Surveyor's 
pass  of  readiness. 

7.  Lay-days,  If  required  by  Charterers,  not  to  commence  before  1st  July,  191  Jt. 

8.  Vessel  to  load  and  discharge  at  such  wharf,  place,  or  In  such  dock  as  may  be  named  by  Char- 
terers, or  their  Agents,  provided  that  they  are  safe  and  customary  places  lor  such  berth  Vessels  to 
load  and  discharge.  , 

9.  [The  Vessel  to  be  loaded  and]  five  (5)  running  days,  except  Sundays  and  holidays,  to  be  allowed 
for  loading  and  steamer  to  be  discharged  with  customary  berth  dispatch,  as  applicable  at  Ports  of 
(Loading  and]  Dlfjcharge,  Owners  paying  any  elevator  charges  at  Port  [or  Ports]  of  Discharge  necessary 
to  Insure  this,  and  If  longer  detained  Charterers  are  to  pay  demurrage  at  the  rate  of  4d.  i,  British 
Sterling  per  net  registered  ton  per  day. 

10.  This  contract  Is  subject  to  all  the  conditions  of  the  regular  Berth  Bill  of  Lading  applicable 
to  the  Port  of  Discharge;  and  the  Master,  or  person  appointed  by  him,  shall  sign  Bills  of  Lading  as 
presented,  without  prejudice  to  his  contract;  any  difference  between  Bills  of  Lading  and  the  freight 
due  vessel  under  this  agreement  is  to  be  settled  at  Loading  Port  before  clearance;  If  In  favor  of  the 
vessel.  In  cash  at  the  current  rate  of  exchange,  less  Insurance;  If  In  favor  of  Charterers,  by  draft  of 
Master  upon  his  consignees,  payable  five  days  after  arrival  at  Port  of  Discharge.  Charterers' 
liability  to  cease  on  cargo  being  shipped  and  difference  of  freight  and/or  demurrage.  If  any,  paid, 
vessel  having  a  lien  on  the  cargo  for  freight. 

Charterers'  stevedores  to  be  employed  at  current  rates  for  loading. 

If  steamer  is  ordered  to  Avonmouih.  cargo  to  be  discharged  in  accordance  vHth  the  rriles  of  the  Bristol 
Channel  and  West  Coast  of  England  Corn  Trade  Association. 

Receivers  of  the  cargo  are  in  no  case  obliged  to  take  delivery  of  the  cargo  at  night  without  their  consent 
and  in  any  event  steamer  must  bear  all  extra  expenses  incurred  by  workirig  at  night. 

11.  The  act  of  God,  restraint  of  rulers  and  people,  war.  fire,  epidemics,  strikes,  and  all  and  every 
danger  and  accident  of  the  seas,  canals,  rivers,  and  of  navigation,  always  mutually  excepted.  It 
Is  also  mutually  agreed  that  this  agreement  Is  subject  to  all  the  terms  and  provisions  of,  and  all 
the  exemptions  from  liability  contained  In  the  Act  of  Congreps  of  the  United  States,  approved  on  the 
13th!, day  of  February.  1893,  and  entitled  "An  Act  relating  to  Navigation  of  Vessels,  etc."  General 
Average  shall  be  adjusted  according  to  York-Antwerp  Rules,   1890. 

12.  This  agreement  Is  made  subject  to  the  Rules  of  the  New  York  Produce  Exchange,  and  all 
disputes  arising  at  the  Port  of  Loading  shall  be  submitted  to  arbitration  at  New  York,  aa  therein 
provided. 

13.  A  commission  of  two  and  one-half  per  cent.  (2H  per  cont.)tand  the  customary  freight  broker- 
age Is  due  by  Owners  on  signing  this  agreement  to  BOWRING  &  COMPANY,  vessel  lost  or  not 
lost,  who  or  whose  Agents  at  Port  of  Loading  are  to  attend  to  ship's  business  on  customary  terms. 

(Signed)     BOWRING    &    COMPANY, 

Witness  to  the  Signature  of  R.  N.  Blact,  Asst.  Manager,  S.  B.  Dept. 

ISigned)     B.  T.  Young  As  Agents  by  telegraphic  authority  of  Mr.  J.  R.  Mclsaac,  O.T.M. 

Dominion  Coal  Co.,  Ltd. 

Witness  to  the  Signature  of  (.Signed)2Ame3  Brooks  Co., 

per  Julitu  H.  Barna. 
A  true  copy: 

~'       '"'  Brokers. 

Note. — Wherever  the  tcord  "Owners"  appears  in  this  charter  party  it  i»  understood  to  mean  ^"Time 
Charterers." 

FOBM  66. — Gross  Form  Coal  Charter  Party  (Short  Trips  Alono  Coast  and  to  West  Incibs) 

TRIP  CHARTER  PARTY  ^ 

FORM  Z-6-6-14 

BOWRING  &  CO. 
17  BATTERY  PLACE,  NEW  YORK 

S.  S.  AGENTS  AND  SHIP  BROKERS 

THIS  CHARTER  PARTY,  made  and  concluded  upon  In  the  City  of  NEW  YORK,  the  18th 
day  of  September  In  the  year  of  our  Lord  one  thousand  nine  hundred  and  fifteen  between  Messrs. 

<fe  Co.,  Agents  for  Time  Charterers  [Owners]  of  the 

Eood  Steamship  called  the of  Bergen,  classed  A   1   at 

Norwegian  Veritas  [Lloyds]  of  the  measurement  of  747  tons  net  reglster.!or, thereabouts,  now  trading 

of  the  first  part,  and  The Co.,  of  St.  Johns.  N.  F., 

of  the  second  part. 

WITNESSETH,  that  the  said  party  of  the  first  part  agrees  on  the  frelghthig  and  chartering  of  the 
said  steamer  (with  the  exception  of  the  cabin  and  necessary  room  for  the  crew.  and".the  storage  of 
provisions,  sails,  fuel  and  cables),  or  sufQclent  room  for  the  cargo  hereinafter  mentioned,  unto  said 

party  of  the  second  part  for  a  voyage  from  Philadelphia.  Pa.,  to  St.  Johns.  N.  F 

orfco  near  thereunto  as  she  may  safely  get  and  there  deliver  her  cargo  on  thelterms  following: 

1.  The  said  steamer  shall  be  tight,  staunch,  strong  and  every  way  fitted  for  such  a  voyage,  and 
receive  on  board  during  the  aforesaid  voyage,  the  merchandise  hereinafter  mentioned;  and  no  goods 
or  merchandise  shall  be  laden  on  board  otherwise  than  from  the  said  party  oflthe  second  part  or  Agent, 
unless  otherwise  mutually  agreed. 

2.  The  said  party  of  the  second  part  doth  engage  to  provide  and  furnish  to  said  steamer  a  full 

and  complete  CARGO  OF  coat,  say  about  ISOO  tons 

and  to  pay  to  said  party  of  the  first  part,  or  Agent,  for  use  of  said  vesseljdurlng  the  voyage  afore- 
said two  dollars  and  fifty  cents  per  ton  of  2S40  lbs.  of  coal  delivered,  payable'at  port  of  discharge  in  United 
States  gold  or  its  ei7iivalent,  free  of  discount  or  Interest,  upon  delivery  of  cargo.  Charterers  are  not 
to  be  liable  for  freight  on  cargo  lost  or  Jettisoned. 

»  Clauses  In  [  ]  were  omitted  from  the  printed  form;  those  In  Italics  were  put  In  with  typewriter. 


206       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Form  66. — Gnoss  Form  Coal  charter  Party  (Short  Trips  Alono  Coast  and  to 
West  Indies)  (.Continued) 
3.     The  act  of  God,  restraint  of  Princes,  Rulers  and  people.  Are  and  all  and  every  other  dangers 
and  accidents  of  the  seas,  rivers  and  steam  navlKatlon  of  what  nature  and  kind  soever,  rlota,  and 
strikes  of  pitmen,  and  all  and  every  other  unavoidable  hindrances  which  may  prevent  the  loading 
and  delivery  durins  the  said  voyage,  alwaysmutually  excepted. 

■1.  It  Is  agreed  that  the  lay  days  for  loading  and  discharging  shall  be  as  follows:  Steamer  to  take 
her  turn  In  loading,  as  customary,  and  cargo  to  be  loaded  with  customary  despatch.  Steamer  to  pav 
cost  0/  trimming. 

Consignees  to  receive  cargo  at  port  of  discharge  at  the  rate  of  not  le3.s  than  five  hundred  (.600)  tons 
per  running  day,  Sundays  and  Legal  Holidays  excepted.  Lay  days  for  dl.scharglng  to  commence 
from  the  time  the  steamer  l.s  ready  to  discharge  cargo.  Cargo  is  to  be  discharged  by  steamer  at  her  oicn 
expense.  Charterers  undertating  that  the  cost  of  stevedoring  shall  not  exceed  Iwentv-flee  cents  per  ton. 
it  is  undirslood  that  steamer  is  to  give  free  use  of  steam,  winches  and  men  to  run  winches.  Charterer! 
to  have  option  of  appointing  stevedore  if  they  so  desire. 

5.  Al.so,  that  for  each  and  every  day's  detention  by  default  of  said  party  of  the  second  part,  or 
Agent,  $150.00  [cents]  U.  S.  Gold  (per  net  register  ton]  per  day,  day  by  day,  shall  be  paid  by  said 
party  of  the  second  part,  or  Agent,  to  said  party  of  the  fir.st  part,  or  Agent. 

6.  Bills  of  Lading  to  be  signed  without  prejudice  to  this  Charter,  but  at  not  less  than  chartered  rates. 

7.  [This  charter  being  entered  into  on  behalf  of  other  parties.  It  Is  hereby  mutually  agreed  tJiiat 
the  liabilltj'  of  the  Freighters  and  Shippers  under  this  charter  shall  cease  upon  the  loading  of  the 
cargo.]  Steamer  to  have  a  lien  upon  the  cargo  tor  all  treight,  dead  freight  and  demurrage,  and  all 
and  every  other  sum,  or  sums  of  money  which  may  become  due  the  steamer  under  this  charter. 

8.  It  is  also  mutually  agreed  that  this  shipment  Is  subject  to  all  the  terms  and  provisions  of  and 
all  the  exemptions  from  liability  contained  in  the  Act  of  Congress  of  the  United  States  entitled  "An 
Act  relating  to  Navigation  of  Vessels,  etc.,"  approved  on  the  13th  day  of  February,  189.3.  Seaworthi- 
ness warranted  only  so  far  as  ordinary  care  can  provide,  and  owners  »re  not  liable  for  loss,  detention, 
or  damage  arising  from  latent  defects  existing  at  the  time  of  sailing.  It  the  owner  of  the  ship  shall 
have  exercised  due  diligence  to  make  said  ship  in  all  respects  seaworthy,  and  properly  manned,  equipped 
and  supplied,  it  is  hereby  agreed  that  In  case  of  danger,  damage  or  disaster  resulting  from  fault  or 
negligence  of  the  pilot,  master  or  crew,  in  the  navigation  or  management  of  the  ship,  or  from  latent 
or  other  defects,  or  unseaworthiness  of  the  ship,  whether  existing  at  time  of  shipment  or  at  the  begin- 
ning of  the  voyage,  but  not  discoverable  by  due  diligence,  the  consignees  or  owners  of  the  cargo  shall 
not  be  exempted  from  liability  for  contribution  in  General  Average,  or  for  any  special  charges  Incurred, 
but  with  the  Shipowner,  shall  contribute  In  General  Average,  and  shall  pay  such  special  charges,  as 
If  such  danger,  damage  or  dl.saster  had  not  resulted  from  such  fault,  negligence,  latent  or  other  defect 
or  unseaworthiness.     General  Average.  If  any,  to  be  settled  according  to  York-Antwerp  rules  of  1890. 

9.  Lay  days  If  required  by  Charterers,  not  to  commence  before  September  S5th.  1915,  and  should 
the  steamer  not  be  ready  for  cargo  at  her  loading  port  on  or  before  Oriober  10th.  1915,  the  Charterers 
or  their  agents  to  have  the  option  of  cancelling  tnls  Charter  Party  at  any  time  not  later  than  the 
day  of  steamer's  readiness, 

10.  Steamer  to  have  liberty  to  tow  and  to  be  towed  and  to  assist  vessels  in  all  situations,  also  to 
call  at  any  port  or  ports  for  coals  and/or  other  supplies. 

11.  The  cargo  or  cargoes  to  be  received  and  delivered  alongside  the  steamer,  where  she  can  load 
and  discharge,  always  safely  afloat  within  reach  of  her  tackles;  and  lighterage,  and  also  extra  lighterage. 
If  .'my,  at  the  risk  and  expense  of  the  cargo. 

12.  Steamer  to  be  discharged  at  euch  wharf  as  charterers  may  designate,  where  steamer  may 
always  safely  lie  afloat. 

Steamer  to  be  coruigned  to  Charterers  or  their  agents  at  port  of  discharge,  free  of  charge  for  attendance. 

."Steamer  to  be  fret  of  wharfage  charges  at  St.  Johns. 

].■?.  A  commission  of  five  per  cent,  on  the  amount  of  freight  and  demurrage  is  due  by  the  Steamer 
and  Owners  on  signing  of  thli  Charter  Party,  ship  lost  or  not  lost,  charter  cancelled  or  not  cancelled, 
to  BOWRING  4  CO. 

14.  To  the  true  and  faithful  performance  of  all  and  every  of  the  foregoing  agreements,  we,  the 
said  prrtlos,  do  hereby  bind  ourselves,  our  heirs,  executors,  administrators  and  assigns,  eacb  to  the 
other.  In  the  penal  sum  of  estimated  amount  of  freight. 

In  Witness  Whbmof,  we  heretmto  set  our  hands,  the  day  and  year  first  above  written. 

(Sigwii)    <t    CO.. 

As    Agents    for    Ovmers. 

(Signed) Witness  to  the  signature  of  (Signed) 

As  Agentt  for  the  Company. 

We  Hereby  Cebtht  that  the  foregoing  Is  a  true  and  correct  copy  of  tlie  original  Charter  Party 
on  file  in  our  office. 

Note. — Wherever  the  word  "OWNERS"  occurs  in  this  charter,  same  refers  to  "TiKe  Cbartertrs." 

The  charter  rate  or  freight  paid  to  the  owner  under  a  trip 
charter  is  usually  based  upon  the  amount  of  cargo  carried,  sub- 
ject to  the  proviso  that  the  cliarterer  is  to  provide  a  full  and 
complete  cargo.  So  in  the  above-mentioned  gross  form  grain 
charter,  payment  is  made  at  a  defined  rate  per  quarter  of  480 
pounds,  English  weight,  delivered  where  specified  in  the  charter. 
The  general  charter  reproduced  in  Form  64  contains  a  blank 
into  which  the  rate  per  ton  of  cargo  or  other  defined  unit  of 
cargo,  depending  upon  what  commodity  is  being  shipped,  is 
inserted  and  the  coal  charter  rate  is  based  upon  cargo  tons  of 
2,240  pounds.     Trip  charters  basing  freights  upon  tonnage  of 


TRIP  OR  VOYAGE  CHARTERS  207 

the  vessel  are  exceptions  to  the  general  practice  of  basing  them 
upon  cargo  tonnage. 

The  freight  clause  of  a  trip  charter  is  accompanied  by  various 
clauses  further  defining  the  rights  and  duties  of  owner  and 
charterer.  Among  them  there  is  the  so-called  "warranty"  clause 
providing  that  the  vessel  "shall  be  tight,  staunch,  strong  and 
every  way  fitted  for  the  voyage."  Another  obligates  the  charterer 
to  provide  a  full  and  complete  cargo  of  the  kind  of  cargo 
definitely  specified,  or  in  case  of  the  berth  terms  grain  charter 
of  Form  65,  of  wheat,  corn  or  rye,  the  charterer,  however,  hav- 
ing the  privilege  of  shipping  a  full  or  part  cargo  of  flaxseed, 
barley  or  oats  at  the  same  charter  rate  with  the  understanding 
that  any  saving  in  loading  expenses  due  to  such  substitution  is 
to  be  "for  vessel's  benefit."  A  bill  of  lading  clause  requires 
the  captain  to  sign  bills  of  lading  as  presented  by  the  charterer, 
the  freight  charges  in  such  bills  of  lading,  however,  being  sub- 
ject to  restrictions.  In  Form  64,  for  example,  it  is  provided  that 
they  may  not  total  less  than  the  freight  agreed  upon  in  the 
charter.  In  Form  65  there  is  a  corresponding  proviso  to  the 
effect  that  "any  difference  between  bills  of  lading  and  the  freight 
due  vessel  under  this  agreement  is  to  be  settled  at  loading  port 
before  clearance ;  if  in  favor  of  vessel,  in  cash  at  the  current  rate 
of  exchange  less  insurance;  if  in  favor  of  charterers,  by  draft 
of  master  upon  his  consignees,  payable  five  days  after  his  ar- 
rival at  port  of  discharge."  The  coal  charter  provides  that  the 
"owner's  regular  bills  of  lading  (are)  to  be  signed  conformed 
to  this  charter."  The  bill  of  lading  clause  in  the  charters  shown 
in  Forms  64  and  65  specifically  provide  that  bills  of  lading  are 
signed  without  prejudice  to  the  charter  party  and  this  is  the 
usual  practice. 

Another  clause  provides  that  the  owner  has  a  "lien  upon 
the  cargo  for  all  freight,  dead  freight  and  demurrage  and  all 
and  every  sum  or  sums  of  money  which  may  become  due  the 
steamer  under  this  charter."  The  term  dead  freight  refers  to 
the  difference  between  the  freight  due  the  vessel  as  per  the 
charter  rates  when  applied  to  a  full  and  complete  cargo  as  pro- 
vided for  in  the  charter,  and  a  smaller  amount  based  upon  a  cargo 
which  is  not  full  and  complete.  The  owner  is  entitled  to  the 
entire  amount  regardless  of  the  charterer's  failure  to  ship  a  full 
and  complete  cargo.    Demurrage  refers  to  the  agreed  payments 


208       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

per  day  for  which  the  charterer  or  his  agent  is  Hable  in  case 
the  vessel  is  detained  by  default  of  the  charterer  to  deliver  the 
cargo  when  loading  or  to  receive  it  when  discharging  within 
the  number  of  lay-days  agreed  upon. 

The  so-called  "lay-day"  clauses  specify  the  number  of  days 
allowed  for  loading  cargo,  and  sometimes  also  for  unloading;  or 
the  number  of  tons  per  day  to  be  loaded  or  discharged.  They 
may  begin  from  the  time  the  vessel  "is  ready  to  load  or  dis- 
charge, and  the  master  to  give  written  notice  of  readiness,"  and 
there  may  be  provisions  requiring  such  notification  of  readiness 
to  be  delivered  at  the  office  of  the  charterer  or  his  agent  at  or 
before  a  certain  hour  of  the  day,  the  lay-days  to  begin  at  a 
stated  hour  on  the  next  business  day.  There  may  also  be  a 
clause  to  the  effect  that  if  the  charterer  requires,  lay-days  shall 
not  commence  before  an  agreed  date.  Charters  also  provide 
whether  lay-days  shall  be  "running-days"  which  are  consecu- 
tive, legal  holidays  and  Sundays  excepted;  or  "working  days," 
which  include  only  such  days  as  are  customarily  devoted  to 
loading  or  unloading  at  the  ports  of  loading  or  discharge.  The 
lay-days  clauses  of  some  charters  further  provide  for  the  pay- 
ment by  the  owner  to  the  charterer  of  "dispatch  money"  at  fixed 
rates  for  each  lay-day  not  used. 

Still  another  clause  of  importance  specifies  where  the  cargo 
is  to  be  delivered  by  the  charterer  and  where  it  shall  be  received 
at  port  of  discharge.  In  Forms  64  and  65  it  is  provided  that  it 
shall  be  alongside  the  vessel  "always  within  reach  of  her 
tackles" ;  and  that  "lighterage  and  also  extra  lighterage,  if  any, 
(shall  be)  at  the  risk  and  expense  of  the  cargo."  The  wharf, 
dock  or  place  for  loading  and  discharging  may  be  named  by  the 
charterer  or  his  agent,  provided  it  is  a  safe  place  for  the  ves- 
sel and  one  customarily  used  for  such  purpose.  Form  64  further 
provides  that  if  the  vessel  is  ordered  to  load  at  more  than  one 
loading  place,  the  "cost  of  this  and  any  subsequent  hauling  (is) 
to  be  paid  by  the  charterers";  if  the  vessel  is  ordered  to  shift 
several  times  between  Norfolk  and  Newport  News,  the  charterers 
are  required  to  pay  the  "expenses"  incurred  beyond  those  in- 
curred by  the  vessel  in  shifting  once  from  her  first  to  her  second 
loading  port  and  to  allow  the  "owners  for  time  lost  in  shifting 
on  that  account  at  the  rate  of  thirty  pounds  British  sterling  per 
dry  or  part  thereof."    In  the  coal  charter  it  is  also  provided  that 


TRIP  OR  VOYAGE  CHARTERS  209 

extra  expense  inrcurred  by  reason  of  working  the  vessel  on  Sun- 
days or  holidays  shall  be  for  the  account  of  the  vessel  if  at  the 
loading  port  and  for  the  account  of  the  cargo  if  at  the  dis- 
charging port,  subject  to  the  proviso  that  if  such  extra  expense 
is  incurred  after  the  agreed  lay-days  have  expired  it  shall  be 
borne  by  the  cargo  whether  at  loading  or  discharging  port. 

While  the  demurrage  and  lighterage  charges,  the  costs  or 
allowances  paid  when  the  vessel  is  asked  to  load  at  more  than 
one  wharf  or  loading  place  and  the  extra  expense  due  to  work 
on  Sundays  and  holidays,  are  port  charges  for  which  the 
charterer  is  liable  over  and  above  the  agreed  charter  rate,  they 
are  special  and  contingent  in  character  and  do  not  alter  the 
original  statement  that  the  charter  rate  in  a  gross  form  charter 
party  covers  the  cargo  transportation,  loading  and  discharging 
and  also  port  charges.  Lighterage  charges  are  not  included  be- 
cause the  charter  requires  the  delivery  and  receipt  of  cargo 
alongside  the  vessel ;  charterers'  demurrage  which  is  designed 
to  speed  up  loading  and  discharging  must,  to  accomplish  its 
purpose,  be  excluded  from  the  charter  rate  agreed  upon  when 
the  charter  is  signed ;  and  expenses  or  allowances  for  extra, 
shiftings  of  the  vessel  are  not  included  because  the  charter  rate 
is  based  upon  a  voyage  during  which  there  will  be  but  one  load- 
ing and  discharging  place  or  not  more  than  such  larger  numbers 
as  may  be  specifically  stated  in  the  charter.  It  frequently  hap- 
pens, however,  that  the  charterer  does  not,  at  the  time  the 
charter  is  signed,  know  exactly  where  the  cargo  is  to  be  loaded 
and  unloaded.  The  exclusion  of  extra  shiftings  from  the  charter 
rate  widens  the  charterers'  option  as  to  loading  and  discharging 
places  and  protects  the  owner  against  unnecessary  requirements. 

Trip  charters  also  contain  a  cancellation  clause.  In  Form  64 
this  clause  provides  that  in  case  the  vessel  is  not  ready  for 
cargo  at  her  loading  pier  before  a  stated  date,  the  charterer 
or  his  agent  has  the  option  of  canceling  the  charter  party  at 
any  time  not  later  than  the  day  of  the  vessel's  readiness.  In 
Form  65  the  cancellation  clause  likewise  confers  upon  the 
charterer  the  right  to  cancel  if  the  vessel  is  not  ready  before  a 
stated  date,  but  not  later  than  the  presentation  of  the  under- 
writers' surveyor's  pass  of  readiness.  Readiness  is  specifically 
defined  to  include  not  only  the  arrival  of  the  vessel  at  loading 
port  but  also  entry  at  the  custom  house,  written  notice  by  the 


210       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

captain  that  all  compartments  are  ready  to  receive  cargo,  and 
presentation  of  a  pass  to  that  effect  issued  by  the  underwriters' 
surveyor.  The  coal  charter  contained  in  Form  66  permits  the 
charterer  to  cancel  at  any  time  not  later  than  the  day  of  readi- 
ness if  the  steamer  is  not  ready  to  receive  cargo  by  a  specified 
date ;  and  if  the  cargo  license  covering  the  coal  shipment  has 
not  been  received  or  is  revoked,  the  charterer  may  cancel  "not 
later  than  the  date  of  steamer's  arrival  at  loading  port  by  pay- 
ing six  days'  demurrage  in  full  liquidation  of  damages  to 
owners."  Cancellation  is  also  permitted  under  this  charter  "at 
any  time  while  the  steamer  is  waiting  for  cargo  by  paying  de- 
murrage, counting  time  on  demurrage  from  time  of  steamer's 
arrival  and  adding  six  days'  demurrage  thereto." 

Other  customary  clauses  are  those  ending  the  charterer's  lia- 
bility under  the  trip  charter  when  the  cargo  is  on  board  and  the 
bills  of  lading  are  signed ;  and  those  limiting  the  owner's  lia- 
bility for  loss,  damage  or  detention  in  accordance  with  the  Harter 
Act  of  February  13,  1893,  and  in  accordance  with  other  condi- 
tions especially  named  in  the  charter.  As  in  case  of  time 
charters,  an  examination  of  the  trip  charters  reproduced  in 
this  chapter  will  show  that  these  liability  clauses  have  not  been 
standardized.  There  may  also  be  clauses  providing  for  the 
settlement  of  disputes  by  arbitration ;  the  application  of  the  rules 
at  the  ports  of  named  local  associations ;  the  making  of  advances 
by  the  charterer  on  account  of  the  freight  to  cover  the  vessel's 
ordinary  disbursements ;  the  payment  of  an  address  or  agency 
fee  to  the  charterer  or  his  agents  in  case  they  attend  to  the 
ship's  business  at  ports  of  loading  or  discharge ;  and  the  pay- 
ment of  a  commission  to  the  ship  broker,  "ship  lost  or  not  lost, 
charter  canceled  or  not  canceled."^ 

Net  Form  Charters 

The  difference  between  the  gross  and  net  form  of  trip  charters 
lies  in  the  clauses  which  establish  the  responsibility  of  owner 
and  charterer.  The  charter  rate  paid  by  the  charterer  under 
the  net  form  covers  only  the  actual  transportation  of  the  cargo 
and  the  owner  is  responsible  only  for  such  service.  The  char- 
terer is  required  to  assume  the  cost  not  merely  of  placing  the 

*See  chapter  XII  p.  194. 


TRIP  OR  VOYAGE  CHARTERS  211 

cargo  alongside  the  vessel  but  of  loading  it  aboard  the  vessel, 
of  stowing  it,  and  of  discharging  it  at  destination.  He  is  also 
called  upon  to  pay  port  charges,  customs  and  harbor  dues  at 
the  port  of  loading  from  the  time  the  vessel  is  ready  to  receive 
cargo,  and  similar  charges  incurred  at  the  port  of  destination. 
A  comparison  of  the  net  form  charter  in  Form  67  with  the 
gross  form  charter  in  Form  64  will  show  that  the  various  clauses 
are  identical  except  that  the  lay-day  clause  (No.  4)  has  ap- 
pended to  it  the  following  highly  important  provision :  "char- 
terers to  load  and  discharge  cargo  at  their  expense,  paying  all 
outward  port  charges,  customs  and  harbor  dues  at  port  of  load- 
ing, and  all  inward  port  charges,  customs  and  harbor  dues  or 
other  foreign  port  dues  in  whatever  nature  at  port  or  ports 
of  discharge" ;  and  except  that  Clause  No.  1 1  regarding  receipt 
and  delivery  of  cargo  and  lighterage  expense  is  supplemented 
w'ith  the  following  sentence:  "Charterers  shall  pay  all  costs  of 
wharfage  at  both  loading  and  discharging  ports." 

The  net  grain  charters  reproduced  in  Forms  68a  and  68b  may 
likewise  be  compared  with  the  gross  form  berth  terms  charter 
shown  in  Form  65.  While  the  clauses  of  these  charters  differ 
in  various  respects,  the  outstanding  differences  which  indicate 
that  the  former  is  a  net  form  charter  are  found  in  Clauses  10 
and  11.  Clause  10  provides  that  "charterers,  are  to  load,  stow 
and  trim  the  cargo  at  their  own  expense,  under  the  direction  of 
the  master,  but  they  shall  not  be  responsible  for  improper  stow- 
age. Charterers  to  pay  all  port  charges  incidental  to  the  outward 
cargo  at  loading  port  or  ports,  including  elevating,  stevedore, 
wharfage  and  tarpaulins,  and  to  provide  and  fill  sacks  required 
to  secure  bulk  grain,  also  dunnage  mats,  if  required,  and  to 
provide  an  agent  for  custom  house  business,  but  owners  to  pay 
all  port  and  other  charges  at  loading  port  until  steamer  arrives 
at  loading  berth."  Clause  11  likewise  requires  the  "charterers' 
agents  to  pay  cost  of  discharging  cargo,  pilotage,  and  all  port 
charges  incidental  to  their  cargo  at  the  discharging  port  or 
ports  to  which  steamer  may  be  ordered,  and  to  provide  an  agent 
for  the  custom  house  business,  free  of  commission.  If  owners 
employ  tally  clerks  for  receiving  or  delivering  cargo,  charterers' 
tally  clerks  to  have  preference  at  equal  rates."  In  this  charter 
various  special  charges  are  separately  arranged  for.  Thus  "if 
the  steamer  discharge  at  Newport,  Mon.,  and  after  discharging 


212       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

FORM  fl7. — GEhnBRAL.  Cargo  Nbt  Form  Chartir  Partt 

THE  GLOBE  LINE 

GASTON,  WILLIAMS  &  WIGMORE  STEAMSHIP  CORPORATION 
39  BROADWAY,  NEW  YORK 

THIS  CHARTER  PARTY,  made  and  concluded  upon  In  the  City  of  NEW  YORK,  the 

flay  of In  the  year  of  our  Lord  one  thousand  nine  hundred  and 

between Agenta   for   Owners   of  the   good 

called  the of 

classed    of  the 

measurement  of tons  net  register,  or  thereabouts,  now 

of  the  first  part,  and of  the  second  part. 

WITNESSETH  that  the  said  party  of  the  first  part  agrees  on  the  freighting  and  chartering  of  the 

Bald (with  the  exception  of  the  deck,  cabin  and  necessary 

room  for  the  crew,  and  the  storage  of  provisions,  sails,  fuel  and  cables),  or  sufflcleut  room  for  the 
cargo  hereinafter,  mentioned,  unto  said  party  of  the  second  part  for  a  voyage  from 

or  80  near  thereunto  as  she  may  safely  get  and  there  deliver  her  cargo  on  the  terms  following: 

1.  The  said shall  be  tight,  staunch,  strong  and  every  way 

fitted  for  such  a  voyage,  and  receive  on  board  during  the  aforesaid  voj'age.  the  merchandise  herein- 
after mentioned;  and  no  goods  or  merchandise  shall  be  laden  on  board  otherwise  tbaa  from  the  aald 
party  of  the  second  part  or  Agents. 

2.  The  said  party  of  the  second  part  doth  engage  to  provide  and  furnish  to  said 

a  full  and  complete  CARGO  OF 

and  to  pay  to  eald  party  of  the  first  part,  or  Agent,  for  use  of  said  vessel  during  the  voyage  aforesaid. 

3.  The  act  of  God.  restraint  of  Princes.  Rulers  and  people,  fire  and  all  and  every  other  dangers  and 
accidents  of  the  sca.s.  rivers  and  steam  navigation  of  what  nature  and  kind  soever,  riots,  and  strikes 
of  pitmen,  and  all  and  every  other  unavoidable  hindrances  which  may  prevent  the  loading  and  delivery 
during  the  said  voyage,   always  mutually  e.xcepted. 

4.  It  Is  agreed  that  the  lay  days  for  loading  and  discharging  shall  be  as  follows: 

Consignees  to  receive  cargo  at  port  of  discharge  at  the  rate  of  not  less  than 

tons  per  running  day.  Sundays  and  Legal  Holidays  excepted.     Lay  days  for  loading  and/or  dlaoharslng 

to  commence  from  the  time  the  steamer Is  ready  to  Toad 

and/or  discharge  cargo,  and  the  master  to  give  written  notice  of  readiness.  Cfiartereri  to  load  and 
discharoe  cargo  at  their  expense,  paying  all  outward  port  charges,  customs  and  harbor  dues  at  port  of 
loading,  and  all  inward  port  charges,  customs  and  harbor  dues,  or  other  foreign  port  dues  in  tchateter 
nature  at   port   or   ports  of  discharge. 

5.  Also,  that  for  each  and  every  day's'detentlon  by  default  of  said  party  of  the  second  part,  or 

Agent U.  S.  Gold  per  day.  day  by  day,  shall  be  paid  by  aald  party  of  the 

second  part,  or  Agent,  to  said  party  of  the  first  part,  or  Agent. 

6.  Bills  of  Lading  to  be  signed  without  prejudice  to  this  Charter,  but  at  not  less  than  chartered 
rates. 

7.  It  Is  mutually  agreed  that  the  Charterers'  liability  under  this  Charter  shall  cease  when  the 

cargo  Is  on  board  and  Bills  of  Lading  signed.     The  Master  and  Owners  of  the 

shall  have  an  absolute  lien  upon  the  cargo  for  all  freight,  dead  freight,  and  demurrage,  and  all  and 
every"  other  sum  or  sums  of  money  which  may  become  due  the  steamer  under  this  Charter. 

8.  It  Is  also  mutually  agreed  that  this  shipment  is  subject  to  all  the  terms  and  provlBions  of  and 
all  the  exemptions  from  liability  contained  In  the  Act  of  Congress  of  the  United  States  entitled  "An 
Act  relating  to  Navigation  of  Vessels,  etc.,"  approved  on  the  13th  day  of  February.  1893.  Sea- 
worthiness warranted  only  so  far  as  ordinary  care  can  provide,  and  owners  are  not  liable  for  loss, 
detention  or  damage  arising  from  latent  defects  existing  at  the  time  of  sailing  If  the  owner  of  the 
ship  shall  have  exercised  due  diligence  to  make  said  ship  In  all  respects  seaworthy,  and  properly 
manned,  equipped  and  supplied.  It  is  hereby  agreed  that  in  case  of  danger,  damage  or  disaster  resulting 
from  fault  or  negligence  of  the  pilot,  master  or  erew,  In  the  navigation  or  management  of  the  ship 
or  from  latent  or  other  defects,  or  unseaworthiness  of  the  ship,  whether  existing  at  time  of  shipment 
or  at  the  beginning  of  the  voyage,  but  not  discoverable  by  due  diligence,  the  consignees  or  owners 
of  the  cargo  shall  not  be  exempted  from  liability  for  contribution  In  General  Average,  or  for  any 
special  charges  Incurred,  but  with  the  Shipowner,  shall  contribute  in  General  Average,  and  shall 
pay  such  special  charges,  as  If  such  danger,  damage  or  disaster  had  not  resulted  from  such  fault, 
negligence,  latent  or  other  defect  or  unseaworthiness.  General  Average,  if  any,  to  be  settled 
according  to   York-.^ntwerp   rules  of   1S90. 

9.  Lay  days  If  reciuired  by  Charterers,  not  to  commence  before 

191 and  should  the not  be  ready  for  cargo  at  her 

loading  port  on  or  before   191 the  Charterers  or 

their  agents  to  have  the  option  of  cancelling  this  Charter  Party  at  any  time  not  later  than  the  day 
of   readiness. 

10 to  have  liberty  to  tow  and  to  be  towed  and  to  aMlft 

vessels  In  all  situations,  also  to  call  at  any  port  or  ports  for  coal  and/or  other  supplies. 

11      The  cargo  or  cargoes  to  be  received  and  delivered  along-side  the 

where  she  can  load  and  discharge,  always  safely  afloat  within  reach  of  her  tackles;  and  lighterage, 
and  also  extra  lighterage.  If  any,  at  the  risk  and  expense  of  the  c&Tgo.&Charterers  thall  vay  aU  eo$U 
of  wharfage  at  both  loading  and  discharging  ports. 

12 to  be  discharged  at  suchTwharfSas  charterers 

may  designate,  where  steamer  may  always  safely  lie  afloat. 

13.  Funds  for  the  vessel's  ordinary  dlsbiirsements  not  to  exceed  one-half  of  the  estimated  frelgbt. 
If  desired  by  the  party  of  the  first  part  or  their  Agents,  to  be  advanced  by  the  Charterers  on  account 

of  the  freight  to  the  Master  and  Owners  at  Port  of  Loading.     Paying per  cent. 

to  cover  Interest,  insurance  and  commission 

14.  A  commission  of  five  per  cent,  on  the  amount  of  freight  and  demurrage  1b  due  by  the 

and  Owners  on  signing  of  this  Charter  Party,  ship  loat 

^Inot  lost,  charter  cancelled  or  not  cancelled,  to 


TRIP  OR  VOYAGE  CHARTERS  213 

Form  67. — General  Cargo  Net  Form  Charter  Party  {Continued) 

"is.  '  To  the  true  and  faitWui  performance  of  ail  and  every  of  the  foregoing  agreements,  we,  the 
Bald  parties,  do  hereby  bind  ourselves,  our  heirs,  executors,  administrators  and  assigns,  each  to  the 
other  In  the  penal  sum  of  estimated  amount  of  freight.. 

IN  WITNESS  WHEREOF,  we  hereunto  set  our  hands,  the  dayrand  yearlflrst  above  written. 
SIGNED   IN   THE   PRESENCE   OF 


WE  HEREBY  CERTIFY  that  the  foregoing  Is' a  true  and  correct  copy  of  the  original  Charter 
Party  on  file  in  our  Office. 

GASTON,   WILLIAMS   &   WIGMORE   STEAMSHIP   CORPORATION. 


FoBM  68a. — New  York  Net  Grain  Charter  Party  (Pre-Wab  Conditions) 

NET  GRAIN  CHARTER 

BOWRING  &  CO. 

17  BATTERY  PLACE 

NEW  YORK 


IT  IS  THIS  DAY  MUTUALLY  AGREED,  between 

Agents  for  Owners  of  the  Steamship   of   .  . . . 

net  register,  British  measurement;  classed   now. 


and  Charterers,  as  follows: 

'1. — That  the  said  steamship  being  tight,  staunch  and  strong,  and  In  every  way  fitted  for  the  voyage 
(and  according  to  Builders'  scale  and  plan,  which  Owners  believe  to  be  correct,  but  da  not  guarantee, 

able  to  carry tons  [2,240  lbs.]  of  wheat  or  maize,  in  addition  to  necessary 

bunker  coal,  and  having cubic  feet,  grain  space,  available  for  such 

cargo) ,  shall  proceed  to  for  orders,  the 

same  to  be  given  at  once  by  Charterers  on  receipt  of  the  Captain's  telegram  advising  vessel's  arrival 
there;   to  load  at    

according  to  custom  of  port,  a  full  and  complete  cargo  of  wheat  and/or  maize  and/or  other  lawful 
merchandise,  including  deckload  at  shipper's  risk,  which  Charterers  bind  themselves  to  furnish,  and 
being  so  loaded  shall  therewith  proceed,  as  ordered  when  signing  bills  of  lading,  to  a  safe  port  in  the 
United  Kingdom,  or  Continent,  between  Bordeaux  and  Hambtirg,  both  inclusive  (Rouen  excluded) 


or  so  near  thereunto  as  she  may  safely  get,  and  there,  always  afloat,  deliver  the  cargo  as  customary 
at  such  wharf,  dock  or  other  safe  place  as  Charterers'  Agents  may  direct  on  arrival,  in  accordance  with 
Bills  of  Lading,  in  consideration  whereof  Charterers  shall  pay  the  vessel  freight  as  follows: 

Bhlllings pence.  Sterling,  per  ton,  If  to  a  port  in  the  United;  Kingdom 

or   Continent,   between   Bordeaux  and  "Hamburg 
both  inclusive  (Rouen  excluded). 

shillings pence.    Sterling,  per  ton,  if 

shillings pence.    Sterling,  per  ton,  if 


2. — Charterers  agree  to  load  the  vessel  to  full  draft  allowed  by  Underwriters'  Surveyors,  failing 
which  they  are  to  pay  dead-freight  for  the  number  of  tons,  short  shipped,  as  shown  by  the  excess 
buoyancy. 

3.^ — Steamer  to  have  liberty  to  sail  with  or  without  pilots,  and  to  tow  and  assist  vessels  In  all 
situations,  also  to  coal  at  Norfolk  or  Newport  News,  !u  which  case  Charterers  or  their  Agents  have  the 
option  of  giving  orders  there;  said  orders  to  be  given  within  12  hours  of  arrival,  or  lay  days  to  count, 
and  for  purposes  of  Freight  to  be  considered  as  given  on  signing  Bills  of  Lading.  Captain  to  give 
written  notice  before  sit-'ning  Bills  of  Lading,  whether  he  calls  for  coal  or  not,  and  at  which  coaling 
station.  Steamer  to  have  liberty  to  coal  at  a  port  in  the  United  Kingdom  or  Coptnliagen,  if  ordered 
to  Denmark,  Sweden  or  the  Baltic;  or  at  Gibraltar,  if  ordered  to  the  Mediterranean  or  Adriatic. 

4. — If  ordered  to  Denmark,  orders  for  the  second  port.  If  used,  to  be  given  on  signing  Bills  of  Lading, 
or  after  arrival  at  the  first  port  at  Charterers'  option. 

5. — Should  the  Steamer  be  ordered  to  discharge  at  a  port  on  the  Continent,  excepting  Rouen, 
where  there  is  not  sufficient  water,  under  normal  conditions,  for  the  Steamer  to  enter  first  tide  after 
arrival,  and  to  lie  always  afloat,  lay  days  are  to  count  from  24  hours  after  notice  of  arrival  at  nearest 
safe  ciii^'omary  anchorage,  and  any  lighterage  incurred  to  reach  the  port  of  discharge  is  to  be  at  the 
e.xpense  and  risk  of  the  receiver  of  the  cargo,  any  custom  of  tlio  port  to  the  contrary  notwithstanding. 

6. — Should  the  Steamer  be  ordered  to  a  port  of  dlscharce  in  the  Sound,  Sweden,  Denmark,  or  the 
Baltic,  Inaccessible  by  reason  of  Ice  on  the  Steamer's  arrival,  the  Master  shall  have  the  option  of 
waiting  imtil  the  port  is  again  open,  or  of  proceeding  to  the  nearest  sate  open  port  or  roadstead 
(telegraphing  his  arrival  there  to  Charterers),  where  he  shall  receive  fresh  orders  for  an  open  and 
accessible  port  of  discharge,  within  said  Countries  or  in  the  United  Kingdom  or  Continent,  as  above, 
within  24  hours  of  arrival,  or  lay  days  to  count.  If  so  ordered,  the  Steamer  shall  receive  the  same 
Freight  as  If  she  had  discharged  at  the  port  to  which  she  was  originally  ordered. 


214       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Form  68a. — New  York  Net  Grain  Charter  Partt  (Pre-war  Conditions)  (ContinueO) 

7. — FrclRht  payalilo  per  ton  of  2,240  lbs.  delivered  on  rlcht  delivery  of  cargo.  In  cash.  If  at  a  port 
In  the  I'nltcd  Kinj,'ili)ni,  or  at  current  rate  of  exchange  for  bankers'  .short  .sight  bills  on  London  If 
In  ail''  (ithor  cmintry. 

8. — f  hartrror.s  to  have  'he  privilege  of  deslfrnatInK  wharves  or  other  safe  places  for  loafllnc  or  dls- 
charRliii;.  The  rarso  Id  In-  brouRht  to.  and  luKrii  fro'u  iilonKSldo  the  .steamer,  at  Mcrr-h;ints'  risk 
Snd  expense.  Steamer  to  stii)ply  .steam  and  winchmen  to  drive  winches,  and  to  give  use  of  necessary 
Rear,  aiao  to  load  or  dlschnrKi-  «t  iil^ht,  im  Sundays  or  holidays  or  on  day  when  notice  Is  Klven  If 
required  by  t'hanerers,  KU'h  thne  not  counllnt'.  they  paying  all  extra  expenses  and  labor  Incurred, 
Includlnc  overtime  of  winchmen. 

9. — ("usb  for  Captain's  ordinary  disbursements  at  port  of  loading  to  be  advanced.  If  required. 
Steamer  paving  two-and-a-half  per  cent,  commission  and  cost  of  Insurance  thereon,  the  amount  of 
advance"  to  be  covenvl  by  captains  draft  payable  three  days  after  ship's  arrival  at  port  of  discharge 
out  of  freight  and  on  which  the  draft  shall  form  a  lien. 

lO.^Ch.artcrers  are  to  load,  stow  and  trim  the  cargo  at  their  own  expense,  under  the  direction  of 
the  Master,  but  Ihi'y  shall  not  be  rciponsiblj  for  huproper  stowage.  Charterers  to  pay  all  port  charges 
incidental  to  the  outward  cargo  at  loading  port  or  ports.  Including  elevating,  stevedore,  wharfage  and 
tarpaulins,  and  to  provide  and  fill  sacks  required  to  secure  bulk  grain,  also  dunnage  mats.  If  required, 
and  to  r'rovkie  an  agent  for  Custom  House  business,  but  ow-ners  to  pay  all  port  and  other  charges  at 
loading  port  until  steamer  arrives  at  loading  berth. 

II.- — Charterers'  Agent  to  pay  cost  of  dUcharging  cargo,  pilotage,  and  all  port  charges  Incidental 
to  their  cargo  at  the  discharging  port  or  ports  to  which  Steamer  may  be  ordered,  and  to  provide  an 
agent  for  the  Custom  HoiLse  business,  free  of  commission.  If  owners  employ  tally  clerks  for  receiving 
or  delivering  cargo.  Charterers'  tally  clerks  to  have  the  preference  at  equ.tl  rates.  If  steamer  dis- 
charge.? at  Newport.  Mon.,  and  after  discharging  loads  outward  cargo  there,  the  Newport  dock  dues 
(covering  Inward  and  outward  entries)  to  be  borne  equally  by  charterers  and  owTiers.  Towages  at 
discharging  ports,  other  than  assisting  to  berth  or  berths,  to  be  for  owners'  account. 

12. — Charterers  to  have  use  of  any  dunnage  or  mats,   etc.,  as  may  be  aboard. 

13. — "The  Steamer  shall  be  consigned  to  Charterers'  Agents  at  ports  of  loading  and  discharge,  and 
shall  employ  their  Broker  to  attend  to  the  Ship's  business,  free  of  commission. 

14. — The  Captain  shall  sign  bills  of  Lading  or  Master's  Receipts  as  and  when  presented,  without 
prejudice  or  reference  to  this  Charter-party,  and  any  difference  between  the  amount  of  Freight  by  the 
Bills  of  Lading  and  this  Charter-party,  to  be  settieii  at  port  nt  loading  before  sailing,  as  customary. 

15. — Lay  days  at  port  of  loading  are  not  to  count  before  the unless 

with  Charterers'  -written  consent,  and  to  commence  on  the  day  following  receipt  by  Charterers'  .\gent3 
of  Captain's  written  notice  of  readiness,  accompanied  by  Surveyor's  Certificate.     Should  the-Steamer 

not  be  ready  to  load  on  or  before  noon  of  the  Charterers 

have  the  option  of  cancelling  this  Charter-party. 

16. — running   days    (Sundays  and   holidays 

excepted)  sliall  be  allowed  the  Charterers  for  loading  and  discharging.  Should  the  cargo  not  be 
delivered  to  Vessel  at  loading  ports  and/or  discharged  at  port  or  porta  of  destination  within  the 
specified  time,  for  each  and  every  day  over  and  above  said  lay  days,  Charterers  are  to  pay,  day  by  day, 

the  sum  of per  day  demurrage,  any  detention 

through  Quarantine  to  vessel  or  cargo,  not  to  count  In  lay  days.  If  sooner  dispatched,  steamer  to 
pay for  each  day  saved. 

17.- — The  clauses  herein  regarding  payment  of  port  charges,  stevedores,  etc.,  at  ports  of  loading 
and  discharging  refer  only  to  such  charges  as  are  ordinarily  Incurred,  any  extra  expenses  caused  by  tho 
steamer  being  under  average,  are  to  be  adjusted  In  the  usual  way.  All  spaces  to  be  placed  at 
Charterers'  disposal,  which  would  be  used  for  cargo  If  loading  for  Owner's  account,  and  wherercargo 
has    been    carried    before. 

18. — If  the  cargo  cannot  be  delivered,  loaded  or  discharged  by  reason  of  a  strike  or  lockout  of  any 
class  of  workmen,  or  stoppage  of  labor  or  lighters,  or  anything  beyond  the  control  of  the  Charterers 
of  Receivers  essential  to  the  delivery,  loading  or  discharge  of  the  cargo,  the  days  for  loading  and 
discharging  shall  not  count  during  the  continuance  of  such  .strike,  stoppage  or  lockout.  A  strike 
of  the  Receiver's  men  only  shall  not  exonerate  him  from  any  demurrage  for  which  he  may  be  liable 
under  this  Charter  If  by  the  use  of  reasonable  diligence  he  could  have  obtained  other  suitable  labor 
or  lighters. 

19. — If  the  Nation  under  whose  flag  the  Vessel  sails  be  at  war,  whereby  her  free  navigation  Is  en- 
dangered, thereby  causing  extra  or  prohibitory  Insurance  on  the  cargo,  the  Charterers  shall  have  the 
privilege  of  cancelling  this  Charter-party  at  the  last  outward  port  of  sailing,  or  at  any  subsequent 
period  when  the  difficulty  may  arise  previous  to  cargo  being  shipped.  Charterers  or  stevedores  shall 
not  be  responsible  for  any  damage  occurring  while  loading  or  discharging  cargo  by  reason  of  any 
defect  In  'Vessel's  machinery  or  tackle,  nor  for  neglect  on  the  part  of  Vessel's  otBcers  or  crew. 

20. — -The  Act  of  God,  perils  of  the  sea.  Are  on  board.  In  hulk  or  craft,  or  on  shore,  barratry  of  tho 
Master  and  Crew,  enemies,  pirates  and  thieves,  arrests  and  restraints  of  princes,  rulers  and  people, 
collisions,  stranding  and  other  accidents  of  navigation  excepted,  even  when  occasioned  by  negligence, 
default  or  error  In  judgment  of  the  Pilot.  Master,  Mariners,  or  other  servants  of  the  Shipowners. 
Not  answerable  tor  any  loss  or  damage  arising  from  explosion,  bursting  of  boilers,  breakage  of  shafts, 
or  any  latent  defect  in  the  machinery  or  hull,  not  resulting  from  want  of  due  diligence  by  the  Owners 
of  the  Ship,  or  any  of  them,  or  by  the  Ship's  Husband  or  Manager.  General  average  shall  be  adjusted 
according  to  York-Antwerp  Rules,    1890. 

It  is  also  mutually  agreed  that  this  shipment  Is  subject  to  all  the  terms  and  provisions  of  and  all 
the  exemptions  from  liability  contained  In  the  Act  of  Congress  of  the  United  States,  approved  on  the 
13th  day  of  February,  ISO,?,  and  entitled,  "An  Act  relating  to  Navigation  of  Vessels,"  etc.,  and  Blila 
of  Lading  are  to  be  signed  in  conformity  with  said  Act. 

21. — Charterers'  liability  to  cease  when  the  cargo  Is  shipped,  the  Owner  or  Master  of  the  Steamer 
having  an  absolute  lien  upon  the  cargo  for  the  recovery  and  payment  of  all  Freight,  Dead  Freight, 
and  Demurrage. 

22. — Owners  .shall  furni.sh  Charterers  with  a  copy  of  vessel's  scale,  and  plan  showing  cubic  capacities 
of  all  holds  and  spaces  upon  signing  of  this  Charter-party. 

23. — Owners  or  Master  shall  cable Vessel's  departure  from 

last  port  to  enter  upon  this  Charter,  and  they  shall  telegraph  likewise,  at  once,  if  any  accident  happens 
to   the  vessel   while   under   this   contract. 

I-  24. — Penalty  for  non-performance  of  this  agreement  to  be  proven  damages,  not  exceeding  estimated 
amount  of  freight. 

By  cable  authority  dated 

Agenta 


Vfe  certify  this  to  be  a  true  copy  of  the  original  Charter  Party  in  our  Possession. 

Brokers 

running  days  (Sundays  and  Holidays  excepted)  remain  for  the  dis- 
charge of  this  cargo.  All  conditions  of  this  Charter-party  have  been  complied  with  at  loading 
port 

The  Brokerage  of  five  per  cent,  on  the  gross  amount  of  freight,  dead  freight,  and  demurrage  due 
under  this  Charter-party,  Steamer  lost  or  not  lost,  shall  be  paid  by  Owners  to  Bowrhag  &  Co, 


TRIP  OR  VOYAGE  CHARTERS  215 

FOBM  68b. — New  York  Net  Grain  Charter  Partt  (War  Conditions) 

NET  GRAIN  CHARTER  ' 

BOWRING  &  CO. 
17  BATTERY  PLACE,  NEW  YORK 

S.  S.  AGENTS  AND  SHIP  BROKERS 

NeiD  YoTt,  December  Srd.  1917 

IT  IS  THIS  DAY  MUTUALLY  AGREED  hetween''Messrs.  A.  P.  Moller  of  Copenhagen.  (Agents 
for]  Managing  Owners  of  the  Steamship  "ARNOLD  MAERSK"  of  1209  tons  net  register,  British 
measurement;  classed  100  A  1  now  reported  bound  iiAth  cargo  from^River  Plate,  U.  S.  and  calculated 
discharged  U.  S.  end  December ^and  THE  OCEAN  TRANSPORTATION  CO.  OF  NEW  YORK 
Charterers,  as  follows: 

1.— That  the  said  steamship  being  tight,  staunch  and  strong,  and  In  every  way  fitted  for  the  voyage 
(and  accordiiig  to  Builders'  scale  and  plan,  which  Owners  believe  to  be  correct,  but  do  not  guarantee, 
able  to  carry  about  2700  tons  (2,240  lbs.)  of  (wheat  or  maize,]  dead-weight  cargo,  In  addition  to  necessary 
bunker  coal,  and  having  about  lItS,000  cubic  feet,  grain  space,  available  for  such  cargo),  shall  proceed 

to (for  orders,  the  same  to  be  given  at 

once  by  Charterers  on  receipt  of  the  Captain's  telegram  advising  vessel's  arrival  there;  to  load  at] 
New  York  and  there  load  according  to  custom  of  port,  a  full  and  complete  cargo  of  (wheat  and/or 
maize  and/or  other]  lawful  merchandise,  excluding  guns,  ammunition,  explosives,  barbed  wire  and 
injurious  cargo.  In  the  event  of  naphtha,  benzine,  calcium  carbide,  guictlime.  ferro  silicon  or  similar 
cargo  being  shipped,  same  to  be  loaded  into  speciallv  constructed  magazines  {provided  by  Charterers  and 
at  their  expense)  in  accordance  with  Danish  insurance  policy  regulations,  including  deckload  at 
shipper's  risk  and  expense,  which  Charterers  bind  themselves  to  furnish,  and  being  so  loaded  shall 
therewith  proceed,  as  ordered  when  signing  bills  of  lading,  to  [a  safe  port  In  the  United  Kingdom,  or 
Continent,  between  Bordeaux  and  Hamburg,  both  inclusive  (Rouen  excluded)]  Lisbon.  Portugal. 
or  so  near  thereunto  as  she  may  safely  get,  and  there,  always  afloat,  deliver  the  cargo  as  customary 
at  such  wharf,  dock  or  other  safe  place  as  Charterers'  Agents  may  direct  on  arrival,  in  accordance 
with  Bills  of  Lading,  In  consideration  whereof  Charterers  shall  pay  the  vessel  freight  as  follows: 
Two  hundred  sixty  shillings  (260/).  Sterling,  per  U>n.\of  S.2i0  lbs.  on  basis  of  clause  2.  (If  to  a  port  In 
the,United  Kingclom  or  Continent,  between  Bordeaux  and  Hamburg,  both  Inclusive,  (Rouen^eicluded.)] 

(shillings] (pence.  Sterling,  per  ton.  If] 

fshilllngsl (pence.   Sterling,  per  ton.  If] 

Total  freight  to  be  prepaid  to  Bowring  &  Company  in  cash,  without  discount,  at  current  rate  of  exchange 
for  banters'  short  sight  bills  on  London,  upon  signing  of  bills  of  lading  and  before  vessel  sails.  Such  freight 
never  to  be  returnable  to  charterers'  ship  or  cargo  lost  or  not  lost. 

2.— Charterers  agree  to  load  the  vessel  to  full  draft  allowed  by  Underwriters'  Surveyors,  failing 
which  they  are  to  pay  dead-freight  for  the  number  of  dead-weight  tons  of  2,240  lbs.,  short  shipped,  as 
shown  by  the  excess  buoyancy. 

3. — Steamer  to  have  liberty  to  sail  with  or  without  pilots,  and  to  tow  and  assist  vessels  In  all  situa- 
tions, (also  to  coal  at  Norfolk  or  Newport  News,  In  which  case  Charterers  or  their  Agents  have  the 
option  of  giving  orders  there;  said  orders  to  be  given  within  12  hours  of  arrival,  or  lay  days  to  count, 
and  for  purposes  of  Freight  to  be  considered  as  given  on  signing  Bills  of  Lading.  Captain  to  give 
written  notice  before  signing  Bills  of  Lading,  whetl>er  he  calls  for  coal  or  not,  and  at  which  coaling 
station.]  Steamer  to  have  liberty  to  coal  [at  a  port  In  the  United  Kingdom  or  Copenhagen,  if  ordered 
to  Denmark.  Sweden,  or  the  Baltic;  or  at  Gibraltar,  If  ordered  to  the  Mediterranean  or  Adriatic! 
en  route. 

4. — [If  ordered  to  Denmark,  orders  for  the  second  port,  if  used,  to  be  given  on  signing  Bills  of  Lading, 
or  after  arrival  at  the  first  port  at  Charterers'  option.] 

5. — .Should  the  Steamer  be  ordered  to  distiiarge  (at  a  port  on  the  Continent,  excepting  Rouen, 
where  there  is  not  sufficient  water,  under  normal  conditions,  for  the  Steamer  to  enter  first  tide  after 
arrival,  and  to  lie  always  alloat,  lay  days  are  to  count  the  same  as  provided  in  clause  16  hereof  (from  24 
hours  after  notice  of  arrival  at  nearest  safe  customary  anchorage,]  and  any  lighterage  incurred  to  reach 
the  port  of  discharge  Is  to  be  at  the  expense  and  risk  of  the  receiver  of  the  cargo,  any  custom  of  the 
port  to  the  contrary,  notwithstanding. 

6.— [Should  the  Steamer  be  ordered  to  a  port  of  discharge  In  the  Sound,  Sweden.  Denmark,  or  the 
Baltic,  inaccessible  by  reason  of  ice  on  the  Steamer's  arrival,  the  Master  shall  have  the  option  of 
waiting  until  the  port  Is  again  open,  or  of  proceeding  to  the  nearest  safe  open  port  or  roadstead  (tele- 
graphing his  arrival  there  to  Charterers),  where  he  shall  receive  fresh  orders  for  an  open  and  accessible 
port  of  discharge,  within  said  Countries  or  In  the  United  Kingdom  or  Continent,  as  above,  within  24 
hours  of  arrival,  or  lay  days  to  count.  If  so  ordered,  the  Steamer  shall  receive  the  same  Freight  m 
If  she  had  discharged  at  the  port  to  which  she  w.as  originally  ordered.) 

7. — (Freight  payable  per  ton  of  2,240  lbs.  delivered  on  right  delivery  of  cargo.  In  cash.  If  at  a  port 
In  the  United  Kingdom,  or  at  current  rate  of  exchange  for  bankers'  short  sight  bills  on  London  u  in 
any  other  country.) 

8. — Charterers  to  (have  the  privilege  ©f]  deslgnatlnglwharves  or  other  safe  places  for  loading  or  dis- 
charging. The  cargo  to  be  brought  to,  and  taken  from  alongside  the  Steamer,  at  Merchants'  risk 
and  expense.  Steamer  to  supply  steam  and  v/lnchmen  to  drive  winches,  and  to  give  use  of 
necessary  gear,  also  to  load  or  discharge  at  night,  on  Sundays  or  holidays  or  on  day  when  notice  is 
given  if  required  by  Charterers,  such  time  not  counting,  they  paying  all  extra  expenses  and  labor  In- 
curred, including  overtime  of  winchmen.     Shore  winchmcn,  if  required,  to  be  for  charterers'  account. 

9. — [Cash  for  Captain's  ordinary  disbursements  at  port  of  loading  to  be  advanced.  If  required. 
Steamer  paying  two-and  a-half  per  cent,  commission  and  cost  of  insurance  thereon,  the  amount  of 
advance  to  be  covered  by  Captain's  draft  payable  three  days  after  ship's  arrival  at  port  of  discharge 
out  of  freight  and  on  which  the  draft  shall  form  a  lien.)  No  claim  shall  be  made  against  owners  owing 
to  consequences  of  delay  through  difflculties  with  crew  or  steamer's  inability  to  get  bunkers,  but  ownert  to 
use  all  possible  diligence  in  these  matters. 

10. — Charterers  are  to  load,  stow  and  trim  the  cargo  at  their  own  expense,  under  the  direction 
of  the  Master,  but  they  shall  not  be  responsible  for  improper  stowage.  Charterers  to  pay  all  port 
charges  incidental  to  the  outward  cargo  at  loading  port  or  ports,  including  elevating,  stevedore,  wharfage 
and  tarpaulins,  and  to  provide  and  fill  sacks  required  to  secure  bulk  grain,  also  dunnage  mats,  dunnage 
feeders  shifting  boards,  if  required,  and  to  provide  an  agent  for  Custom  House  business,  but  owners  to 
pay  all  port  and  other  charges  at  loading  port  until  steamer  arrives  at  loading  berth,  but  American 
tonnage  dues  (if  any  ore  required)  to  be  paid  by  steamer's  agent  are  to  be  for  charterers'  account. 

11. — Charterers'  Agent  to  pay  cost  of  discharging  cargo,  pilotage,  and  all  port  charges  incidental 
to  their  cargo  at  the  discharging  port  or  ports  to  which  Steamer  liiay  be  ordered,  and  to  provide  an 

i  Clauses  in  [  ]  were  omitted  from  the  printed  form;  those  In  Italics  were  put  in  with  typewriter. 


216       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

FORM  68b. — NEW  YORK  Net  Grain  Charter  Party  (War  Conditions)  {Continued) 
agent  for  the  Custom  House  biislntss,  free  of  commission.  If  owners  employ  tally  clerks  for  receiving 
or  dcUvcrliis  c.irijo.  ( 'lia'-ttTors'  ip.Ily  cUrks  to  luive  the  preference  at  equal  rates.  [H  steamer  dls- 
cliarses  at  Newport  Mon..  and  after  (llsehnrulnK  loads  oulward  caryo  there,  the  Newport  dock  dues 
(covering  Inward  I'lul  outward  entries i  l>i  lie  borne  equall.v  by  charterers  and  owner.s.l  Towages 
at  discharging    porl.s.  otner  than  assistins  to  berth  or  berths,  to  be  for  owners'  account. 

12. — (Charterers  to  have  use  of  any  dunnage  or  mats,  etc.,  as  may  be  aboard.] 

13. — The  Steamer  shall  be  consigned  to  charterers'  Agents  at  ports  of  loading  and  discharge,  and 
Bhall  employ  their  Droker  to  attend  to  the  Ship's  business  free  of  commission. 

1-1. — The  Captain  shall  sign  bills  of  Lading  or  Master's  Kecelpts  as  and  when  presented,  without 
prejudice  or  retoreuce  to  this  Cliarter-parly,  and  any  dlflercnce  between  the  amount  of  Freight  by 
the  UlHs  of  Lading  and  this  Charter-party,  to  be  settled  at  port  of  loading  before  sailing,  as  customary. 

15. — Lay  days  at  port  of  loading  are  not  to  count  before  the  1st  January,  lois.  unless 
with  Charterers'  written  consent,  and  to  commence  on  tlie  day  [following]  receipt  by  Charterers'  Agents 
of  Captain's  \vrltten  notice  of  readiness,  accompanied  by  Surveyor's  CertlOcate.  Time  sJiall  thus 
count  Ttgardlcss  of  whctl^er  or  not  steamer  is  in  berth  conuesllon  or  consequences  of  war.  Sliould  the 
Steamer  not  be  ready  to  load  on  or  before  noon  of  the  Slsl  January,  191S — Charterers  have  the 
option  of  cancelling  this  Charter-party. 

16. — Ten  (10)  running  days  (Sundays  and  holidays  excepted)  shall  be  allowed  the  Charterers  for 
all  purposes  including  loading  and  discharging.  Charterers  guarantee  a  ready  berth  for  steamer  at 
the  port  of  discharge,  or  failing  steamer  getting  same  lav  days  are  to  count  from  lime  of  her  arrival  at  or 
off  the  port,  irrespective  of  berth,  congestion  or  consequences  of  tear.  .Should  the  cargo  not  be  delivered 
to  Vessel  at  loading  port  and/or  discharged  at  port  [or  ports]  of  destination  within  the  specified  time, 
for  each  and  every  day  over  and  above  said  lay  days.  Charterers  are  to  pay,  day  by  day,  the  sum  (of 
four  pence  per  net  register  ton]  three  hundred  pounds  per  day  demurrage,  any  detention  through 
Quarantine  to  vesbol  or  cargo,  not  to  count  In  lay  days.  If  sooner  dispatched,  steamer  to  pay  (£10  for 
each  dav  saved].  One  hundred  and  fifty  pounds  for  each  lay  day  saved.  Charterers  guarantee  the  pay- 
ment of  all  demurrage  incurred  at  both  ends,  to  Bowring  &  Co.,  New  York. 

17. — The  clauses  herein  regarding  payment  of  port  charges,  stevedores,  etc.,  at  ports  of  loading  and 
aischorglng  refer  only  to  such  charges  as  are  ordinarily  Incurred,  any  extra  expenses  caused  by  the 
steamer  being  under  aver:ige.  are  to  be  adjusted  In  the  usual  way.  All  spaces  to  be  placed  at  Char- 
terers' disposal,  which  would  be  used  for  cargo  If  loading  for  Owner's  account,  and  where  cargo  has 
been  carried  before. 

18. — If  the  cargo  carmot  be  delivered,  loaded  or  discharged  by  reason  of  a  strike  or  lockout  of  any 
class  of  workmen,  or  stoppage  of  labor  or  lighters,  or  anything  beyond  the  control  of  the  Charterers 
or  Receivers  essential  to  the  delivery,  loading  or  discharge  of  the  cargo,  the  days  for  loading  and  dis- 
charging shall  not  count  during  the  continuance  of  such  strike,  stoppage  or  lockout.  A  strike  of  the 
Receiver's  men  only  shall  not  exonerate  him  from  any  demurrage  for  which  he  may  be  liable  under  thla 
Charter  If  by  the  use  of  reasonable  diligence  he  could  have  obtained  other  suitable  labor  or  lighters. 

19. — If  the  Nation  under  wliose  flag  the  Vessel  sails  be  at  war,  whereby  her  free  navigation  Is  en- 
dangered, thcreliy  causing  extra  or  prohibitory  Insurance  on  the  cargo,  the  Charterers  shall  have 
the  privilege  of  cancelling  this  Charter-party  at  the  last  outward  port  of  sailing,  or  at  any  subsequent 
period  when  the  difBculty  may  arise  previous  to  cargo  being  shipped.  Charterers  or  stevedores  shall 
not  be  responsible  for  any  damage  occiuring  while  loading  or  discharging  cargo  by  reason  of  any 
defect  In  Vessel's  machinery  or  tackle,  nor  for  neglect  on  the  part  of  Vessel's  officers  or  crew.  In  the 
event  of  Denmark  becoming  engaged  in  war  prior  to  the  steamer's  reporting  for  loading  hereunder,  owners 
to  have  liberty  of  cancelling  this  charter  party. 

20. — The  Act  of  God,  perils  of  the  sea,  fire  on  board.  In  hulk  or  craft,  or  on  shore,  barratry  of  the 
Master  and  Crew,  enemies,  pirates  and  thieves,  arrests  and  restraints  of  princes,  rulers  and  people, 
collisions,  stranding  and  other  accidents  of  navigation  excepted,  even  when  occasioned  by  negligence, 
default  or  error  In  judgment  of  the  Pilot,  Master,  Mariners,  or  other  servants  of  the  Shipowners.  Not 
answerable  for  any  loss  or  damage  arising  from  explosion,  bursting  of  boilers,  breakage  of  shafts,  or 
any  latent  defect  In  the  machinery  or  hull,  not  resulting  from  want  of  due  diligence  by  the  Owners 
of  the  Ship,  or  any  of  them,  or  by  the  Ship's  Husband  or  Manager.  General  average  shall  be  adjusted 
according  to  York-Antwerp  Rules,  1890. 

It  Is  also  mutually  agreed  that  this  shipment  Is  subject  to  all  the  terms  and  provisions  of  and  all  the 
exemptions  from  liability  contained  in  the  Act  of  Congress  of  the  United  States,  approved  on  the  13th 
day  of  February,  IS93,  and  entitled,  "An  Act  relating  to  Navigation  of  Vessels,"  etc.,  and  Bills  of 
Lading  are  to  be  signed  in  conformity  with  said  Act, 

21. — [Charterers'  liability  to  cease  when  the  cargo  is  shipped,]  the  Owner  or  Master  of  the  Steamer 
having  an  absolute  lien  upon  the  cargo  for  the  recovery  and  payment  of  all  Freight,  Dead  Freight, 
Demurrage,  Dues,  Taxes,  etc. 

22. — [Owners  shall  furnish  Charterers  with  a  copy  of  vessel's  scale,  and  plan  showing  cubic  capacities 
of  all  holds  and  spaces  upon  signing  of  this  Charter-party.] 

23. — Owners  or  Master  shall  cable  Bowring-Ncio  York  Vessel's  departure  from  last  port  to  enter 
upon  this  Charter,  and  they  shall  telegraph  likewise,  at  once,  tf  any  accident  happens  to  the  vessel 
while  under  this  contract. 

24. — Penalty  for  non-performance  of  this  agreement  to  be  proven  damages,  not  exceeding  estimated 
amount  of  freight. 

This  charter  is  subject  to  the  approval  of  the  Interallied  Chartering  Executive,  also  the  U.  S.  Shivping 
Board. 

All  dues  and/or  taxes  on  cargo  or  Imposed  on  steamer  by  reason  of  having  this  cargo  aboard  to  be  for 
charterers'  account.  Bills  of  Lading  shall  be  issued  for  all  the  cargo  loaded  into  steamer,  and  shall  contain 
the  names  of  the  firms  to  whom  the  cargo  is  consigned — following  such  names  the  following  words  shall  be 
addid  "not  to  order." 

Charterers  guarantee  that  the  Untied  States  Government  Export  Licenses  will  be  furnished,  covering  all 
the  cargo  loaded  into  steamer. 

Owners  hereby  guarantee  the  United  States  Shipping  Board  that  the  steamer  icill,  following  discharge 
at  Lisbon,  return  to  a  United  States  Atlantic  or  Gulf  port  either  with  cargo  or  in  ballast  from  Portugal,  the 
Spanish  Atlantic  or  North  Africa,  not  below  25  degrees  North,  excluding  the  Mediterranean  Sea. 

running  days  (Sundays  and  Holidays  excepted)  remain  for  the  discharge. 

of  this  cargo.     All  conditions  of  this  Charter-party  have  been  complied  with  at  loading  port 

The  Brokerage  of  2,S  percenton  the  gross  amount  of  freight,  dead  freight  and  demurrage  due  under 
this  Charter-party,  Steamer  lost  or  not  lost,  shall  be  paid  by  Owners  to  Bowking  &  Co. 

By  cable  authority  dated  London,  December  Srd,  1917. 
From  Messrs.  H.  Clarkson  <&  Co.,  for  the  Managing 

Oicners [Agents.\ 

(Signed)     BOWRING  &  COMPANY, 

R.  N.  Black,  Asst.  Mgr.  S    B.  Dept. 
As  Agents, 
f  (Signed)      OCEAN  TRANSPORTATION  CORP., 
\  Wm.  F.  Vidal,  Pres. 

We  certify  this  to  be  a  true  eopy'of  the  original  Charter-party  in  our  Possession 

[Brolert.] 


TRIP  OR  VOYAGE  CHARTERS  217 

loads  outward  cargo  there,  the  Newport  dock  dues  (covering 
inward  and  outward  entries)  to  be  borne  equally  by  charterers 
and  owners.  Towages  at  discharging  ports  other  than  assisting 
to  berth  or  berths,  to  be  for  owners'  account." 

Modified  Gross  and  Net  Charters 

Many  trip  charters  have  been  so  modified  that  they  are  neither 
of  the  gross  nor  the  net  form  and  are  variously  referred  to  ^ 
as  modified  gross  or  semi-net  charters.  The  nitrate  charter 
parties  reproduced  in  Forms  69a  and  69b,  for  example,  are 
modified  gross  charters  as  the  charter  rate  does  not  definitely 
cover  the  entire  cost  of  discharging.  They  provide  that  when 
the  cargo  is  discharged  at  the  Atlantic  or  Gulf  ports  of  the 
United  States  the  charterers  are  to  name  the  stevedore,  while 
the  owners  are  to  pay  agreed  amounts  for  stevedoring  and  also 
"half  the  cost  of  weighing  of  three  cents  per  bag."  Loose  nitrate 
is  to  be  bagged  at  ship's  expense,  but  the  consignees  are  to  pro- 
vide bags  and  twine.  Under  the  terms  of  the  trip  charter  used 
in  the  Brazilian  coffee  import  trade  the  coffee  is  sometimes  dis- 
charged at  the  American  importer's  pier  by  his  own  stevedores, 
the  owners  agreeing  to  pay  the  charterer  an  agreed  amount  per 
bag  for  stevedoring  and  a  per  diem  charge  for  the  use  of  his  pier. 
The  so-called  "Welsh  form"  of  coal  charter,  reproduced  in  Form 
70a,  provides  that  the  charterer  shall  discharge  the  cargo  and  that 
the  owner  shall  pay  him  an  agreed  amount  per  ton  to  cover  dis- 
charging expenses,  and  that  all  wharfage  dues  on  the  cargo  shall 
be  paid  by  the  charterer.  The  saiHng  vessel  charter  commonly 
used  in  shipping  corn  or  linseed  from  the  River  Plate  to  the 
United  States  requires  the  charterer  to  pay  a  number  of  specified 
port  dues  and  to  provide  dunnage  and  shifting  boards.  In  the 
usual  "Cuban  Ore  charter"  the  freight  paid  by  the  charterer  is  in 
full  of  "all  charges,  pilotages,  consulages,  lighterage,  trimming 
lights,  Qyde  dues,  and  all  other  dues  customarily  payable  by 
steamers,"  but  the  provision  governing  loading  and  discharging 
makes  it  a  modified  gross  charter.  The  captain  is  to  supply  the 
charterer's  stevedore  both  at  the  ports  of  loading  and  discharge, 
paying  to  the  charterer  specified  amounts  per  ton  which  may  be 
deducted  from  freight.  The  standard  "Cuban  sugar  charter"  used 
in  shipping  sugar  to  the  United  States  before  1917  was  a  gross 


218       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Form  69a. — Nitrate  CnARTERTPARTT  (Phe-Wab  Co^fDITION8) 

NITRATE  CHARTER  PARTY ' 

BOWRING  &  COMPANY 

17  BATTERY  PLACE,  NEW  YORK 

SHIP    BROKERS    AND    STEAMSHIP    AGENTS    AND    GENERAL  [COMRUSSION 

MERCHANTS 

New  York,  Februarj/  ISth,  1914. 

IT  IS  THIS  DA  Y  MUTUALLY  AGREED  between  Messrs 

Company  of  \\  llmlngton,  Delaware,  Chartercra  and  Afessrs Co. 

acting  as  Agents  for  the  Owners  of  the  good  .steamship,  called  the 

classed  100  Al  of  the  burthen  of  S5St  tuns  net  ret,lstcr  or  hereabouts,  now  trading  and  expected 
ready  load  hereunder  about  April  20th.  Captain  being  bound  to  report  by  wire  his  arrival  at  and 
departure  from  port  where  steamer  last  Is  prhir  to  entering  on  this  charter,  to  his  Owners,  who  are 
bound  to  Inform  Charterers  of  all  news  recelveii  from  the  steamer  Witnesseth: — 

1.  That  the  said  steamer,  being  tight,  .staunch  and  strong,  well  and  .sufndently  manned,  stored 
and  victualled,  and  In  every  respect  fit  to  perform  the  voyage  hereinafter  mentioned  shall.  If  bound 
to  West  Coa.st  of  South  America  In  ballast,  proceed  In  ballast  to  Valparaiso  for  orders,  to  be  given 

within  twenty-four  hours  after  receipt  of  Master's  notice  of  arrival  to   

Chile.   Cable  address (to  whom  all  applications 

referring  to  steamer  and  cargo  on  the  West  Coast  have  to  be  made)  or  If  bound  to  West  Coast  with 
cargo,  shall  with  all  possible  despatch,  after  having  discharged  such  Inward  cargo,  proceed,  as  ordered 
at  last  port  of  discharge  (which  orders  are  to  be  given  before  12  o'clock  noon  on  the  day  of  completion 
of  discharge  of  inward  cargo  at  a  port  on  the  West  Coast  of  South  America,  the  Captain  keeping  Mr. 

well  advised  of  when  discharge  will  probably  be  completed  and  charterers 

always  having  privilege  up  to  time  of  completion  of  discharge  of  altering  any  orders  previously  given) 
to  lo.ad  at  one,  two  or  three  ports  and/or  adjacent  Caletas  between  Taltal  and  Pisagua  both  included 
(iQuique  and/or  Pisagua  and/or  their  adjacent  Caletas  counting  for  one  port,  also  Tocopllla  and/or 
Mejiilonea  and/or  Antofagasta  and/or  Caleta  Coloso  counting  as  one  port),  where  she  shall  receive 
a  full  and  complete  cargo  of  Nitrate  of  Soda  In  bags  not  exceeding  what  she  can  reasonably  stow  and 
carry  over  and  above  her  cabin,  tackle,  apparel,  provisions  and  furniture.  It  is  hereby  mutually 
agreed  that  the  steamer  shall  not  load  more  than  6800  tons  and  not  less  than  GSOO  tons  English  gross 
weight.  The  Master  must  declare  upon  arrival  at  the  first  loading  port  the  exact  amount  of  cargo 
he  will  take  'within  twenty-five  tons  more  or  less. 

2.  The  steamer  to  pay  all  port  charges  and  to  be  consigned  in  the  said  ports  of  loading  to  Char- 
terer's .Agents,  to  whom  the  customary  agency  fee  of  Five  pounds  British  sterling  for  doing  the 
steamer's  business  shall  be  paid  by  the  Master,  payable  at  one  port  only. 

3.  The  cargo  to  be  placed  by  the  shippers  free  alongside  of  the  steamer  at  the  Shippers'  risk  and 
expense. 

The  loading  of  the  said  cargo  shall  be  at  an  average  rate  of  not  less  than  500  tons  per  working  day. 
the  lay  days  not  to  commence  before  the  10th  of  April.  1914.  to  be  reckoned  from  the  day  after  the 
Master  gives  notice  In  writing  that  the  steamer  (being  clear  of  all  Inward  cargo,  and  being  well  cleaned 
by  the  crew)  is  ready  to  receive  cargo  at  port  of  loading  to  her  day  of  despatch,  and  in  addition  ten 
running  days  on  demurrage  are  to  be  allowed  Charterers  at  the  rate  of  fourpence  British  sterling  per 
net  registered  ton  per  day.  or  its  equivalent  for  each  and  every  day's  detention,  payable  dally.  It  is 
understood  that  the  lay  days  shall  be  reckoned  according  to  the  custom  of  the  West  Coast,  viz. 
taking  the  word  "working"  to  exclude  surf  days,  Sundays  and  all  other  holidays,  whether  ecclesiastical 
or  civil,  also  days  of  strikes  and  lockouts.  Time  occupied  in  shifting  ports  not  to  count  as  lay  days. 
Shotild  the  steamer  be  unnecessarily  detained  at  any  other  period  of  the  voyage,  such  detention  to 
be  paid  for  by  the  parly  delinquent  at  the  above-named  rate  of  demurrage. 

4.  The  Master  to  give  notice  in  writing,  when  he  Is  ready  to  receive  or  deliver  cargo,  and  Char- 
terer's Agents  to  inform  him  in  like  manner  when  he  Is  at  liberty  to  proceed  on  his  voyage.  Bills 
of  Lading  containing  negli-cence  clause  as  per  clause  12  to  be  signed  by  the  Master,  "weight  and  quality 
unknown  all  on  board  to  be  delivered"  at  such  rate  of  freight  as  Charterers  or  their  Agents  may  direct, 
but  at  not  less  a  rate  than  hereinafter  stipulated,  and  without  prejudice  to  this  Charter  Party. 

5.  The  cargo  to  be  properly  stowed.  Owners  to  employ  Charterers'  stevedore  and  the  necessary 
dunnage  to  be  found  by  the  steamer,  and  the  Owners  to  be  responsible  for  bad  stowage;  but  should 
Charterers  require  different  parcels  of  the  cargo  to  be  separated  for  other  purposes  than  for  the  pre- 
vention of  damage,  they  are  to  find  the  materials.  No  cargo  to  be  received  on  board  except  by  order 
of  the  Charterers  or  their  Agents.  Owners  are  to  have  an  accurate  tally  kept  of  the  number  of  bags 
placed  aboard  steamer,  furnishing  enough  competent  men  to  secure  such  tally,  but  not  less  than  one 
tally  man  to  each  hatch  when  beiisg  worked. 

6.  After  the  despatch  of  the  steamer,  loaded  as  aforesaid,  should  the  vessel  put  Into  port  of 
distress,  or  be  under  average,  she  Is  to  be  consigned  to  Charterers  or  their  Agents,  paying  them  usual 
charges  and  commissions,  and,  in  case  average  statement  be  required,  the  same  to  be  made  by  adjusters 
appointed  by  Charterers  who  are  to  attend  to  settlement  and  collection  of  the  average  subject  to 
customary  charges.  General  average,  if  any,  to  be  adjusted  according  to  the  lYork-Antwerp 
Rules,  1S90. 

7.  After  receiving  on  board  the  said  cargo,  stowing  It  In  the  customary  manner  ana  being  duly 
cleared  out  at  the  Custom  House,  the  said  steamer  shall  proceed  under  full  steam  to  St.  Lucia,  St. 

Thomas  or  Trinidad  wheretthe, Master  shall  receive  orders  from  the 

Company,  of   (cable  address    ) 

sent  by  them  within  24  hours,  Sundays  and  holidays  excepted,  after  they  receive  the  Master's  tele- 
graphic advices  of  arrival,  to  proceed  to  any  one  .safe  Atlantic  or  Gulf  port  in  the  United  States  between 
Boston  and  Galveston,  both  included;  or  she  shall,  as  ordered,  proceed  direct  to  port  or  ports  included 
within  the  ranee  of  above  options  or  as  near  thereunto  as  she  can  safely  get  and  there,  always  afloat, 
according  to  Bills  of  Ladln?  and  Charter  p.^rty,  deliver  the  cargo,  which  is  to  be  discharged  and  taken 
from  alongside  according  to  the  custom  of  the  port  for  steamers,  and  so  end  the  voyage.  Charterers 
to  have  the  option  of  a  .second  port  of  discharge  within  the  range  above  provided  for,  such  option 
to  he  declared  on  or  before  the  completion  of  discharging  at  first  port  of  discharge  but  In  case  thi* 
option  Is  availed  of,  S2wh  second  port  to  be  in  the  Gulf  If  first  port  of  discharge  is  a  Gulf  port,  or  the  Atlantic 
if  first  port  is  an  Atlantic  port. 

8.  It  is  understood  and  agreed  that  should  the  steamer  be  ordered  to  the  Delaware  River,  Char- 
terers are  to  have  the  option  of  discharge  at  three  ports  on  the  Delaware  River  (Pigeon's  Point  and/or 
Thompsons  Point  and/or  Philadelohia  in  any  order)  not  north  of  Philadelphia,  as  ordered  on  arrival 
at  Delaware  Breakwater,  such  three  ports  on  the  Delaware  River  only  counting  as  one  port  of  dis- 
charge under  this  c:harter.  Charterers  airree  that  the  port  charges  (including  towages  and  boatages) 
of  the  three  Delaware  River  ports,  If  used,  shall  not  exceed  the  port  charges  of  two  Delaware  River 

gorts.  and  that  lay  days  shall  count  the  same  as  if  steamer  discharged  at  two  ports  In  the  Delaware 
;lver. 
'  9.  [After  receiving  on  board  the  said  cargo,  stowing  It  In  the  customary  manner  and  being  duly 

»  Clauses  In  [  ]  were  omitted  from  the  printed  form;  those  In  italics  were  put  In  with  typewriter. 


TRIP  OR  VOYAGE  CHARTERS  219 

FORM  69a. — Nitrate  Charter  Party  (Pre- War  Conditions)  (Continued) 
cleared  out  at  the  Custom  House,  the  said  steamer  shall  proceed  under  full  steam  to  San  Francisco 
where  the  Master  shall  receive  orders  from  the  E.  I.  du  Pont  de  Nemours  Powder  Co.,  of  Wilmington, 
Delaware  (through  their  representative  at  San  Francisco)  to  be  given  by  him  within  24  hours,  Sundays 
and  Holidays  excepted,  after  they  receive  the  Master's  written  advice  of  arrival  to  proceed  with  his 
steamer  for  discharge  at  San  Francisco  (City  or  Bay)  and/or  du  Pont,  Washington,  or  as  near  there- 
unto as  she  can  safely  get  and  there,  always  afloat,  according  to  Bills  of  Lading  and  Charter  Party, 
deliver  the  cargo,  which  Is  to  be  discharged  and  taken  from  alongside  according  to  the  custom  of  the 
port  for  steamers,  and  so  end  the  voyage.  If  Charterers  exercise  the  option  of  discharging  at  both  porta 
this  option  to  be  declared  on  or  before  the  completion  of  discharging  at  first  port  of  discharge.] 

10.  [Charterers  to  have  the  option  on  sijnlng  Bills  of  Lading  of  ordering  the  steamer  either  direct 
to  a  port  within  the  aftermentioned  limits  or  to  St.  Vincent,  where  she  shall  receive  orders  from  Char- 
terers within  twenty-four  hours  (Sundays  and  Bank  Holidays  excepted)  after  receipt  of  Master's 
telegraphic  advice  of  arrival  to  proceed  with  his  steamer  for  discharge  to  a  safe  port  In  the  United 
Kingdom  or  on  the  Continent  between  Ha^'Te  and  Hamburg,  both  included,  or  so  near  thereunto  as 
Bhe  may  safely  get,  always  afloat  and  there,  according  to  Bills  of  Lading  and  Charter  Party,  deliver 
the  whole  of  her  cargo,  which  Is  to  be  dischar,f;ed  and  taken  from  alongside  according  to  the  custom 
of  the  pnrt  for  steamers,  and  so  end  the  voyage.  Charterers  to  have  the  option  of  a  second  port  of 
discharge  within  the  range  provided  for  in  this  clause,  such  option  to  be  declared  on  or  before  the 
completion  of  discharging  at  first  port  of  discharge.] 

11.  Charterers'  Agents  have  the  privilege  of  naming  the  discharging  dock  or  place,  provided  they 
avail  themselves  of  same  within  twenty-four  hours  before  the  arrival  of  the  steamer  at  port  of  dis- 
charge Is  notiaed  to  them  by  the  Master  or  his  Agent,  and  such  dock  or  place  to  be  one  into  which 
she  can  at  once  safely  enter  and  He  afloat  at  all  times.  [If  ordered  to  Hamburg  steamer  to  discharge 
in  stream  if  required  by  Charterers.] 

12.  In  consideration  of  all  which  the  Charterers  do  hereby  agree  to  pay  or  cause  to  be  paid,  to 
the  Captain  or  his  order  for  freight  of  the  said  steamer,  on  true  and  right  delivery  of  the  cargo  In  the 
port  of  discharge,  according  to  the  Bills  of  Lading  and  Charter  Party.    [If  sent  to  a  port  of  call  tor  orders 

to  discharge  In  United  States]  nineteen  shillings   pence  say  19/  British 

Sterling  (without  reduction  If  orders  are  given  before  sailing  to  proceed  to  a  direct  port  of  discharge,) 
In  full,  per  ton  of  2.240  pounds  Avoirdupois  English  gross  weight  delivered.     [If  sent  to  a  port  of  call 

for  orders  to  discharge  In  the  United  .Kingdom  or  on  the   Continent]  (shillings) 

[pence  say] [British  Sterling   (without  reduction  If  orders 

are  given  before  sailing  to  proceed  to  a  direct  port  of  discharge).  In  lull,  per  ton  of  2,240  pounds  of 
Avoirdupois  English  gro.ss  weight  delivered.) 

If  a  second  port  of  discharge  {[j°  \^l  u°k!  or  on^Continent  (bet.  H.  and  H.)]}  's  "sed  ticelve   (/2) 
pence  British  Sterling  additional  freight  on  entire  cargo  per  ton  2.240  pounds  delivered  to  be  paid. 

13.  Freight  to  be  paj'able  In  the  following  manner:  [If  discharged  in  the  United  States),  one 
third  In  cash  en  arrival  at  the  current  rate  of  exchange  for  short  bills  on  London,  and  the  remainder 
after  true  delivery  in  Charterer's  drafts  on  their  London  otace  at  ninety  days'  sight  free  of  all  dis- 
count, or  in  cash  less  three  months'  discount  at  the  rate  of  5'~"o  per  annum  at  the  option  of  consignees. 
(If  discharged  in  the  United  Kingdom  one-third  In  cash  on  arrival  without  discount,  and  remainder 
on  true  and  right  delivery  of  the  cargo,  likewise  In  cash  without  discount,  or  If  discharged  at  a  port 
on  the  Continent,  one-third  In  cash  on  arrival  at  the  printed  rate  of  exchange  for  short  date  bills  on 
London  without  discount,  and  remainder  on  true  and  right  delivery  of  the  cargo  In  good  and  approved 
banker's  sight  bills  on  London.)  In  the  event  of  the  steamer  having  free  wharfage  at  port  of  dis- 
charge, a  reduction  of  four  pence  (4d)  per  ton  of  2.240  pounds,  to  be  made  In  the  freight  rate. 

14.  The  Master  If  required  by  him  to  be  supplied  at  port  of  loading  with  a  sum  not  exceeding  five 
hundred  pounds  Sterling  (£500)  at  the  current  rate  of  exchange,  and  subject  to  5  per  cent  to  cover 
Interest,  commission,  and  cost  of  Insurance,  to  be  deducted  from  the  first  payment  of  freight  after 
arrival  of  the  vessel  at  the  port  of  discharge.  And  It  Is  hereby  expressly  agreed  that  the  receipt  of  the 
master  for  any  such  sum  or  sums  of  money  as  shall  be  supplied  or  advanced  to  him  by  the  Charterers 
Bhall  be  conclusive  and  binding  upon  the  owners,  and  they  shall  hereby  be  prevented  as  between  them 
and  the  Charterers  from  Inquiry  Into  the  necessity  for  or  the  appropriation  of  the  sum  of  money,  which 
In  such  receipt  or  receipts  shall  be  acknowledged  to  have  been  received. 

15.  The  act  of  God,  earthquakes.  Inundation,  perils  of  the  sea,  fire,  barratrj'  of  the  master  and 
crew,  enemies,  pirates,  assailing  thieves,  arrest  and  restraint  of  princes,  rulers  and  people,  political 
disturbances  or  Impediments,  strikes  and  lockouts,  collisions,  stranding  and  other  accidents  of  navi- 
gation, even  when  occasioned  by  the  negligence,  default  or  error  In  judgment  of  the  pilot.  Master, 
mariners,  or  other  servants  of  the  Shipowners,  from  the  signing  of  this  Charter  Party  to  the.concluslon 
of  the  said  voyage,  always  mutually  excepted. 

16.  The  steamer  has  liberty  to  call  at  any  port  in  any  order  for  coaling  purposes,  and  to  sail  without 
pilots,  to  tow  and  assist  vessels  In  distress,  and  to  deviate  for  the  purpose  of  saving  life  and  property. 
Owners  or  master  must  notify  Charterers  by  wire  within  twenty-four  hours  after  sailing  of  steamer's 
departure  from  the  final  coaling  port  for  port  of  discharge  In  the  United  States.  In  case  owners  fall 
to  give  such  Immediate  telegraphic  notification  Charterers  shall  not  be  responsible  for  any  resulting 
losslof  time  Incurred  at  discharging  port. 

17.  Steamer  not  answerable  for  losses  through  explosion:  bursting  of  boilers,  breakage  of  shafts, 
or  any  latent  defect  In  the  machinery  or  hull,  not  resulting  from  want  of  due  diligence  by  the  Owners 
of  the  Ship,  or  any  of  them,  or  by  the  Ship's  hu.sband  or  manager.  All  and  any  liability  of  the 
Charterers  under  this  Agreement  shall  cease  and  determine  as  soon  as  the  cargo  Is  on  board  and  upon 
payment  of  the  aforesaid  advance  Freight;  all  questions  abroad  whether  of  demurrage  or  otherwise 
to  be  settled  and  adjusted  at  port  of  loading,  the  Owner  and  Captain  having  a  lien  on  the  cargo  for 
demurrage  and  damage  for  detention,  as  well  as  for  freight  and  dead  freight. 

18.  Should  the  steamer  not  be  ready  to  load  at  loading  port  on  or  before  6  P.  M.  on  Mav  10th,  1914, 
Charterers'  Agents  to  have  the  option  of  canceling  this  Charter  Party. 

19.  Steamer  to  pay  half  the  expense  of  weighing,  of  three  cents  per  bag,  and  loose  nitrate  to  be 
bagged  at  ship's  expense,  consignees  providing  bags  and  twine  for  their  account.  If  the  steamer 
discharges  at  a  U.  S.  Atlantic  or  U.  S.  Gulf  port,  the  Charterers  are  to  name  the  stevedore  who  will 
discharge  the  cargo,  for  which  the  Owner  of  said  Steamer  will  pay  thirty-five  cents  per  ton.  [If  the 
steamer  discharges  at  a  United  States  West  Coast  port.  Charterer's  stevedore  to  be  employed  at 
current  rates.) 

20.  Steamer  to  supply  canvas  slings,  8  feet  by  8  feet,  for  loading  and  discharging  cargo. 

21.  And  for  the  true  and  punctual  fulfillment  of  each  and  all  the  conditions  herein  mentioned,  the 
contracting  parties  do  hereby  bind  themselves  to  each  other  In  the  penal  sum  of  the  estimated  amount 
of  freight,  to  be  forfeited  and  paid  by  the  party  delinquent  to  the  party  observant. 

22.  Brokerage  of  five  per  cent.  Is  due  to  Bowrlng  &  Company  on  signing  of  this  Charter  Party, 
ship  lost  or  not  lost,  and  Steamer  to  be  consigned  to  them  or  tUelr  Agents,  as  shipbrokers,  at  port  of 
discharge,   or  to  forfeit  twenty  pounds  British  Sterling  damages. 

(Signed) Witness  to  the  Signature  of     (Signed) Co. 

T.  M. 

(Signed)     Witness  to  the  Signature  of     (Signed)     &  Company 


.\s  agents  for  Owners  by  cable  authority  of  Messrs &  Co.,  London. 

We  Hehbbt  Certift  the  above  to  be  a  true  copy  of  the  original  Charter  Party  In  our  possession. 


220       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

FORM  69n. — Nitrate  ChartebIPartt  (War  Conditions) 

NITRATE  CHARTER  PARTY ' 
BOWRING  &  COMPANY 
17  BATTERY  PLACE,  NEW  YORK 

SHIP    BROKERS    AND    STEAMSHIP    AGENTS    AND    GENERAL    COMMISSION 

MERCHANTS 

New  Yort.  June  14.  1918. 

IT  IS  THIS  DA  Y  MUTUALLY  AGREED  between Company 

of  WlImlnKton,  IJelaware.  Charterers,  and  U.  S.  Shipping  Board,  acting  as  Agents  for  the  Chartered 
Owners  of  the  good  steamship,  called  the  ^TIM  MARU.  classed  100  Al,  ot  the  burthen  of  S91S 
tons  net  register  or  thereabouts,  now  expected  due  at  Seattle  about  June  ISth.  Captain  being  bound 
to  report  bv  wire  his  arrival  at  and  departure  from  port  where  steamer  Uvst  la  prior  to  entering  on  thla 
charter,  to  his  Owners,  who  are  bound  to  Inform  Charterers  of  all  news  received  from  the  steamer 
Wltnesseth: — 

1.  That  said  steamer,  being  tight,  staunch  and  strong,  well  and  sufficiently  manned,  stored  and 
victualled,  and  In  every  respect  fit  to  perform  the  voyage  hereinafter  mentioned  shall.  If  bound  to 
West  Coast  of  South  America  In  ballast,  proceed  In  ballast  to  Ara  If  coming  South  or  Taltal  If  going 
North  for  orders,  to  be  given  within  twenty-four  hours  after  receipt  of  Master's  notice  of  arrival  to ... . 

Chile,  Cable  address,   (to  whom  all  applications  referring  to 

steamer  and  cargo  on  the  West  Coast  have  to  be  made)  or  If  bound  to  West  Coast  with  cargo,  shall  with 
all  po.ssible  despatch,  after  having  discharged  such  inward  cargo,  proceed,  as  ordered  at  last  port  of 
discharge  (which  orders  are  to  be  given  before  12  o'clock  noon  on  the  day  of  completion  of  discharge 
of  inward  cargo  at  a  port  on  the  West  Coast  of  .South  America,  the  Captain  keeping  Mr.  Edge  well 
advised  of  when  discharge  will  probably  be  completed  and  charterers  always  having  privilege  up  to 
time  of  completion  of  discharge  of  altering  any  orders  previously  given)  to  load  at  one  or  two  [or 
three]  ports  and/or  adjacent  Caletas  between  Taltal  and  Pisagua  both  included  (Iqulque  and/or 
PLsagua  and/or  their  adj.acent  Caletas  counting  for  one  port,  also  Tocopllla  and/or  Mejiilones  and/or 
Antofagasta  and/or  Caleta  Coloso  counting  as  one  port),  where  she  shall  receive  a  full  and  complete 
cargo  of  Nitrate  of  Soda  In  bags  not  exceeding  what  she  can  reasonably  stow  and  carry  over  and 
above  her  cabin,  tackle,  apparel,  provisions  and  furniture.  It  Is  hereby  mutually  agreed  that  the 
steamer  shall  not  load  more  than  7700  tons  and  not  less  than  7100  tons  English  gross  weight.  The 
Master  must  declare  upon  arrival  at  the  first  loading  port  the  exact  amount  of  cargo  he  will  take  within 
twenty-five  tons  more  or  less. 

2.  The  steamer  to  pay  all  port  charges  and  to  be  consigned  at  the  said  ports  of  loading  to  Charterer's 
Agents,  to  whom  the  customary  agency  fee  of  Five  pounds  British  Sterling  for  doing  the  steamer's 
business  shall  be  paid  by  the  Master,  payable  at  one  port  only. 

,3.  The  cargo  to  be  placed  by  the  shippers  free  alongside  of  the  steamer  at  the  Shipper's  risk  and 
expense. 

The  loading  of  the  said  cargo  shall  be  at  an  average  rate  of  not  less  than  SOO  tons  per  working  day, 
tne  lay  da.vs  not  to  commence  before  the  IGth  July,  WIS,  to  be  reckoned  from  the  day  the  Master 
gives  notice  In  writing  that  the  steamer  (being  clear  of  all  inward  cargo,  and  being  well  cleaned  by 
the  crew)  Is  ready  to  receive  cargo  at  port  of  loading  to  her  day  of  despatch,  and  in  addition  ten  running 
days  on  demurrage  [are  to]  or  held  by  be  allowed  Charterers  at  the  rate  of  fourpence  British  Sterling 
per  net  registered  ton  per  day,  or  its  equivalent  for  each  and  every  day's  detention,  payable  dally. 
It  Is  understood  that  the  lay  days  shall  be  reckoned  according  to  the  custom  of  the  West  Coast, 
viz.:  taking  the  word  "working"  to  exclude  surf  days,  Sundays  and  all  other  holidays,  whether 
ecclesiastical  or  civil,  also  days  of  strikes  and  lockouts.  Time  occupied  in  shifting  ports  not  to  count 
as  lay  days.  Should  the  steamer  be  unnecessarily  detained  at  any  other  period  of  the  voyage,  such  de- 
tention to  be  paid  for  by  the  party  delinquent  at  the  above-named  rate  of  demurrage. 

4.  The  Master  to  give  notice  In  writing,  when  he  Is  ready  to  receive  or  deliver  cargo,  and  Charterer's 
Agents  to  Inform  him  In  like  manner  when  he  Is  at  liberty  to  proceed  on  his  voyage.  Bills  of  Lading 
containing  negligence  clause  as  per  clause  14  to  be  signed  by  the  Master,  "weight  and  quality  un- 
known all  on  board  to  be  delivered"  at  such  rate  of  freight  as  Charterers  or  their  Agents  may  direct, 
but  at  not  less  a  rate  than  hereinafter  stipulated,  and  without  prejudice  to  this  Charter  Party. 

5.  The  cargo  to  be  properly  stowed.  Owners  to  employ  Charterers'  stevedore  and  the  necessary 
dunnage  to  be  found  by  the  steamer,  and  the  Owners  to  be  responsible  for  bad  stowage;  but  should 
Charterers  require  different  parcels  of  the  cargo  to  be  separated  for  other  purposes  than  for  the  pre- 
vention of  damage,  they  are  to  And  the  materials.  No  cargo  to  be  received  on  board  except  by  order 
of  the  Charterers  or  their  Agents.  Owners  are  to  have  an  accurate  tally  kept  of  the  number  of  bags 
placed  aboard  steamer,  furnishing  enough  competent  men  to  secure  such  tally,  but  not  less  than  one 
tally  man  to  each  hatch  when  being  worked. 

6.  (After  the  despatch  of  the  steamer,  loaded  as  aforesaid,  should  the  vessel  put  Into  port  of  distress, 
or  be  under  average,  she  Is  to  be  consigned  to  Charterers  or  their  Agents,  paying  them  usual  charges 
and  commissions,  and,  in  case  average  statement  be  required,  the  same  to  be  made  by  adjusters 
appointed  by  Charterers  who  are  to  attend  to  settlement  and  collection  of  the  average  subject  to  cus- 
tomary charges.]     General  averages,  if  any,  to  be  adjusted  according  to  the  York-Antwerp  Rules,  1890. 

7.  After  receiving  on  board  the  said  cargo,  stowing  It  In  the  customary  manner  and  being  duly 
cleared  out  at  the  Custom  House,  the  said  steamer  shall  proceed  under  full  steam  to  Colon,  [St.  Lucia, 
St.  Thomas  or  Trinidad  at  Owners'  option]  where  the  Master  shall  receive  orders  from  the 

Company,  of 

(cable  address )  sent  by  them  within  24  hours,  Sundays  and  holi- 
days excepted,  after  they  receive  the  Master's  telegraphic  advices  of  arrival,  to  proceed  to  any  one 
safe  Atlantic  or  Gulf  port  In  the  United  States  between  Boston  and  Savannah  both  Included;  or  she 
shall,  as  ordered,  proceed  direct  to  port  included  within  the  range  of  above  options  or  as  near  there- 
unto as  she  can  safely  get  and  the.-e,  always  afloat,  according  to  Bills  of  Lading  and  Charter  party, 
deliver  the  cargo,  which  Ls  to  be  discharged  and  taken  hut  at  an  average  rate  of  not  less  than  800  tons  per 
weather  working  day,  Sundays  and  holidays  excepted,  from  alongside  according  to  the  custom  of  the 
port  for  steamers,  and  so  end  the  voyage.  [Charterers  to  have  the  option  of  a  second  port  of  dis- 
charge within  the  range  above  provided  for,  such  option  to  be  declared  on  or  before  the  completion 
of  discharging  at  first  port  of  discharge.)    Any  time  saved  in  loading  to  count  as  additional  time  for  dts- 

I  Clauses  enclosed  In  [  ]  were  eliminated  from  the  printed  form;  those  In  italics  were  inserted  wltb 
typewriter. 


TRIP  OR  VOYAGE  CHARTERS  221 

,  Form  69b — Nitrate  Charter  Party  (Wah  Conditions)  {Continued) 

i  tltarging  and  vice  versa,  if  longer  detained  charterers  to  vay  demurrages  of  $2700  -per  day  or  pro  Tola  for 
van  of  day. 

S.  It  is  understood  and  agreed  that  should  the  steamer  be  ordered  to  the  Delaware  River,  Charterers 
are  to  have  the  option  of  discharge  at  three  ports  on  the  Delaware  River  (Pigeon's  Point  and/or 
Thompson's  Point  and/or  Deepwater  Point  and/or  Philadelphia  In  anv  order)  not  north  of  Phila- 
delphia, as  ordered  on  arrival  at  Delaware  Breakwater,  such  three  ports  on  the  Delaware  River  odly 
counting  as  one  port  of  discharge  under  this  Charter.  Charterers  agree  that  the  port  charges  (Including 
towages  and  boatages)  of  three  Delaware  River  ports,  if  used,  shall  not  exceed  the  port  charges  of  two 
Delaware  River  ports,  and  that  lay  days  shall  count  the  same  as  if  steamer  discharged  at  two  porta 
In  the  Delaware  River. 

.9.  [After  receiving  on  board  the  said  cargo,  stowing  it  In  the  customary  manner  and  being  duly 
cleared  out  at  the  Custom  House,  the  said  steamer  shall  proceed  under  full  steam  to  San  Francisco 
where  the  Master  shall  receive  orders  from  the  E.  I.  du  Pont  de  Nemours  &  Co.,  of  Wilmington 
Delaware  (through  their  representative  at  San  Francisco)  to  be  given  by  hhn  within  24  hours,  Sundays 
and  holidays  excepted,  after  they  receive  the  Master's  written  advice  of  arrival  to  proceed'  with  his 
steamer  for  discharge  at  San  Francisco  (City  or  Bay)  and/or  du  Pont,  Washington  and/or  Powder 
Point,  British  Columbia,  or  as  near  thereunto  as  she  can  safely  get  and  there,  always  afloat,  according 
to  Bills  of  Lading  and  Charter  Party,  deliver  the  cargo,  which  is  to  be  discharged  and  taken  from 
alongside  according  to  the  custom  of  the  port  for  steamers,  and  so  end  the  voj'age.  If  Charterers 
exercise  the  option  of  discharging  at  two  or  three  ports  this  option  to  be  declared  on  or  before  the 
completion  of  discharging  at  first  port  of  discharge.! 

10.  Charterers'  Agents  have  the  privilege  of  naming  the  discharging  dock  or  place,  provided  they 
avail  themselves  of  same  within  twenty-four  hours  before  the  arrival  of  the  steamer  at  port  of  dis- 
charge Is  notified  to  them  by  the  Master  or  his  Agent,  and  such  dock  or  place  to  be  one  into  which 
Bhe  can  at  once  safely  enter  and  He  afloat  at  all  times. 

11.  In  consideration  of  all  which  the  Charterers  do  hereby  agree  to  pay  or  cause  to  be  paid,  to  the 
Chartered  oicners  [Captain  or  his  order  for]  freight  of  the  said  steamer,  on  true  and  right  delivery  of 
the  cargo  in  the  port  of  discharge  according  to  the  Bills  of  Lading  and  Charter  Party.     If  sent  to  a 

port  of  call  for  orders  ticenty-fivc  dollars  (SSS.OO)  U.  S.  Gold  [shillings]   [pence  say)    .... 

[British  Sterling]  (without  reduction  If  orders  are  given  before  sailing  to  proceed  to  a  direct  port  of 
discharge).  In  full,  per  ton  of  2.240  pounds  Avoirdupois  English  gross  weight  delivered. 

12.  Freight  to  be  payable  In  the  following  manner.  One-third  in  cash  on  arrival  at  the  current 
rate  of  exchange  for  short  hills  on  London,  and  the  remainder  after  true  delivery  [in  Charterer's  drafts 
on  their  London  oflSce  at  ninety  days'  sight  free  of  all  dlscoimt,  or  In  cash  less  three  months'  discount 
at  the  rate  of  5%  per  annum  at  the  option  of  consignees.  In  the  event  of  the  steamer  having  free 
wharfage  at  port  of  discharge,  a  reduction  of  four  pence  (4d)  per  ton  of  2,240  pounds,  to  be  made  In 
the  freight  rate.) 

13.  The  Master  if  required  by  him  to  be  supplied  at  port  of  loading  with  a  sum  not  exceeding 
Twenty-tLve  htmdred  pounds  Sterling  (£.2500),  at  the  current  rate  of  exchange,  and  subject  to  6 
per  cent,  to  cover  Interest,  commission,  and  cost  of  insurance,  to  be  deducted  from  the  first  pay- 
ment of  freight  after  arrival  of  the  vessel  at  the  port  of  discharge.  And  It  is  hereby  expressly  agreed 
that  the  receipt  of  the  master  for  any  such  sum  or  sums  of  money  as  shall  be  supplied  or  advanced 
to  him  by  the  Charterers  shall  be  conclusive  and  binding  upon  the  owners,  and  they  shall  hereby  be 
prevented  as  between  them  and  the  Charterers  from  Inquiry  into  the  necessity  for  or  the  appropriation 
of  the  sum  of  money,  which  in  such  receipt  or  receipts  shall  be  acknowledged  to  have  been  received. 

14.  The  act  of  God,  earthquakes.  Inundation,  perils  of  the  sea,  fire,  barratry  of  the  master  and 
crew,  enemies,  pirates,  assailing  thieves,  arrest  and  restraint  of  princes,  rulers  and  people,  political 
disturbances  or  Impediments,  strikes  and  lockouts,  collisions,  stranding  and  other  accidents  of  navi- 
gation, even  when  occasioned  by  the  negligence,  default  or  error  In  judgment  of  the  pilot.  Master, 
Mariners,  or  other  servants  of  the  Shipowners,  from  the  signing  of  this  Charter  Party  to  the  con- 
clusion of  the  said  voyage,  always  mutually  excepted. 

15.  The  steamer  has  liberty  to  call  at  any  port  In  any  order  for  coallngpurposes,  and  to  sail  without 
pilots,  to  tow  and  assist  vessels  in  distress,  and  to  deviate  for  the  purpose  of  saving  life  and  property. 
Owners  or  master  must  notify  Charterers  by  wire  within  twenty-four  hours  after  sailing  of  steamers' 
departure  from  the  final  coaling  port  for  port  of  discharge  In  the  United  States.  [In  case  owners  fall 
to  give  such  Immediate  telegraphic  notification  Charterers  shall  not  be  responsible  for  any  resulting 
loss  of  time  Incurred  at  discharging  port.] 

16.  Steamers  not  answerable  for  losses  through  explosion;  bursting  of  boilers,  breakage  of  shafts. 
or  any  latent  defect  In  the  machinery  or  hull,  not  resulting  from  want  of  due  diligence  by  the  Owners 
of  the  Ship,  or  any  of  them,  or  by  the  Ship's  husband  or  manager.  All  and  any  liability  of  the  Char- 
terers under  this  Agreement  shall  cease  and  determine  as  soon  as  the  cargo  is  on  board  and  upon 
payment  of  the  aforesaid  advance  Freight;  all  questions  abroad  whether  of  demurrage  or  otherwise 
to  be  settled  and  adjusted  at  port  of  loading,  the  Owner  and  Captain  having  a  lien  on  the  cargo  for 
flemurrage  and  damage  for  detention,  as  well  as  for  freight  and  dead  freight. 

17.  Should  the  steamer  not  be  ready  to  load  at  loading  port  on  or  before  6  P.  M.  on  1st  September, 
1918,  Charterers'  Agents  to  have  the  option  of  cancelling  this  Charter  Party. 

18.  Steamer  to  pay  half  the  expense  of  weighing,  of  three  cents  per  bag,  and  loose  nitrate  to  be 
bagged  at  ship's  expense,  consignees  providing  bags  and  twine  for  their  account.  (If  the  steamer 
discharges  at  a  U.  8.  Atlantic  or  U.  S.  Gulf  port,  the]  Charterers  are  to  name  the  stevedore  who  will 
discharge  the  cargo,  for  which  the  Owner  of  said  Steamer  will  pay  current  rates.  [If  the  steamer  dia- 
cliarges  at  a  United  States  West  Coast  port.  Charterer's  stevedore  to  be  employed  at  current  rates.] 

19.  Steamer  to  supply  canva,s  slings,  8  feet  by  8  feet,  for  loading  and  discharging  cargo. 

20.  And  for  the  true  and  punctual  fulfillment  of  each  and  all  of  the  conditions  herein  mentioned, 
the  contracting  parties  do  hereby  bind  themselves  to  each  other  In  the  penal  sum  of  the  estimated 
amotmt  of  freight,  to  be  forfeited  and  paid  by  the  party  delinquent  to  the  party  observant. 

21.  [Brokerage  of  five  per  cent.  Is  due  to  Bowring  &  Company  on  signing  of  this  Charter  Party. 
Bhlp  lost  or  not  lost,  and  Steamer  to  be  consigned  to  them  or  their  Agents,  as  shipbrokers,  at  port 
of  discharge,  or  to  forfeit  twenty  pounds  British  Sterling  damages.] 

An  address  commission  of  2l-i%  is  due  to  charterers  on  the  amount  of  freight  earned  under  this  Charter. 
This  Chartefis  subject  to  the  approval  of  the  Chartering  Committee  of  the  U.  S.  Shipping  Board. 

Witness  to  the  Signature  of 

, , , , (.Signed)     &  Co. 

Witness  to  the  Signature  of  Traf.  Mgr. 

(.Signed)     U.  S.  Shipping  Board, 

As  agents  for  Owners  by  cable  authority  of 

WB  Hebebt  Cebtut  the  above  to  be  a  true  copy  of  the  original  Charter  Party  in  our  possession. 


222       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

FORM  70A. — Coal  Charter  Party — Welsh  Form 

COAL  CHARTER  PARTY— WELSH  FORM^ 

BOWRING  &  CO. 

STEAMSHIP  AGENTS  AND  BROKERS 

17  STATE  STREET,  NEW  YORK 

New  Yort,  June  Srd,  191B. 

IT  IS  THIS  DAY  MUTUALLY  AGREED,  between    &  Co., 

Agents  for  Owners  of  the  Greek  Steamship 

Of .' '.'.'." built  in07.  at  Sloctlon  of  SG91  net  tons  register  or  there. 

abotits  and  about tons  dead  weight  exclusive  of  bunkers,  classed  1st  class  In 

now  tr'adincr  and  Messrs Co..  of  New   York. 

1  That  the  said  Steamer  being  tight,  staunch,  and  strong,  ana  every  way  flttcd  for  the  Voyage, 
shall,  with  all  possible  dispatch,  sail  and  proceed  to  lialtlmore  or  Hampton  Roads,  at  Charterers'  option 
order's  to  be  given  before  leaving  last  port  in  ballast  and  there  load,  always  afloat,  in  the  customary  manner. 

from  the  Charterers,  In  such  Dock  as  may  be  ordered  by  them  on  or  before  arrival  [In] 

(Roads) 1  '»"  a"'l  complete  Cargo  of Coal 

not  exceeding  0700  tons,  nor  less  than  GMO  tons,  and  not  exceeding  what  she  can  reasonably  stow  and 
carry,  over  and  above  her  Tackle.  Apparel,  Provisions  and  Furniture;  and  being  so  loaded,  shall 
therewith  proceed,  with  all  possible  dispatch,  to  Marseilles,  Genoa,  Savona.  Spezzia.  Naples,  Leghorn 
or  CivUa  Vecchia,  as  ordered  on  signing  bills  of  lading  or  so  near  thereunto  as  she  can  safely  get.  and 
there  dollvor  her  cargo  alongside  any  Wharf,  and/or  Vessel  and/or  Craft,  as  ordered,  where  she  can 
safely  deliver,  always  afloat,  but  If  required  to  shift,  the  expense  of  so  doing  to  be  paid  by  Consignees, 
and  the  lime  to  count:  on  being  paid  Freight  at  the  rate  of  forty  sMllings  (40/)  if  ordered  to  Marseilles 
or  forty-fire  shillings  (4-5/)  if  ordered  to  Spezzia,  Genoa,  Naples,  Savona.  Leghorn  or  Civlta  Vecchia. 
one  port  only,  per  ton  of  20  cwt.  or  1.015  kilos  [delivered,  or]  on  BUI  of  Lading  quantity  less  two  per 
cent  [at  Receiver's  option,  to  be  declared  In  writing,  before  bulk  la  broken.  If  the  Receiver  should 
elect  to  weigh  the  Cargo  at  the  port  of  destination,  the  weighing  shall  be  done  (by  an  official  weigher) 
at  his  expense  The  o^vner  may  provide  a  check  weigher  at  Steamer's  expense.  Should  any  deficiency 
be  alleged  on  the  authority  of  such  weighing,  it  sliall  affect  the  freight  only,  from  which  no  deduction 
Bhall  be  made  for  alleged  shortage  of  cargo,  any  custom  of  the  port  of  discharge  notwithstanding,  but 
the]  owner  shall  furnish.  If  required,  a  Statutory  Declaration  by  the  Master  and  other  officers  that 
all  the  Cargo  received  on  board  has  been  delivered.  The  freight  Is  in  lull  of  Trimming,  and  of  all  Port 
Charges,  Pilotage,  and  Consulages  on  the  Vessel.    All  Wharfage  dues  on  the  Cargo  to  be  paid  by  the 

2.  A  sailing  telegram  to  be  sent  to  the  Charterers  or  their  agents  on  Steamer  leaving  her  last 
port    or  In  default  twenty-four  hours  more  to  be  allowed  for  loading. 

3.  The  cargo  to  be  loaded  leith  ciistomary  despatch  [hours]  (excluding  Bunkering  time,  Sundays, 
Custom  House,  Colliery,  and  Local  Holidays,  and  from  6  p.  m.  on  Saturday  or  the  day  previous  to 
any  such  Holiday  to  7  a.  m.  on  Monday,  or  the  day  after  any  such  Holiday,  unless  used)  commenclrig 
when  written  notice  Is  given  of  Steamer  being  completely  discharged  of  Inward  cargo  and  ballast  In 
all  her  holds,  and  ready  to  load,  such  notice  to  be  given  between  business  hours  of  9  a.  m.  and  5  p.  m.. 
or  1  p.  m.  on  Saturdays.  Any  time  lost  through  riots,  strikes,  lockouts,  or  any  dispute  between  masters 
and  men,  occasioning  a  stoppage  of  pitmen,  trimmers,  or  other  hands  connected  with  the  working  or 
delivery  of  the  coal  for  which  the  Steamer  is  stemmed,  or  by  reason  of  accidents  to  minas  or  machinery, 
obstructions  on  the  Railway  or  In  the  Docks:  or  by  reason  of  floods,  frosts,  logs,  storms  or  any  cause 
beyond  the  control  of  the  Charterers,  not  to  be  computed  as  part  of  the  loading  time  (unless  any  cargo 
be  actually  loaded  during  such  time).  In  the  event  of  any  stoppage  or  stoppages  arising  from  any  ot 
these  causes  continuing  for  the  period  of  six  nmning  days  from  the  time  of  the  vessel  being  ready 
to  load,  tills  Charter  shall  become  null  and  void,  provided,  however,  that  no  cargo  shall  have  been 
Bhipped  on  board  the  Steamer  previous  to  such  stoppage  or  stoppages.  In  case  of  partial  holiday,  or 
partial  stoppage  of  Colliery  or  Collieries  from  any  or  either  of  the  aforenamed  causes,  the  lay  hours 
to  be  extended  proportionately  to  the  diminution  of  output  arising  from  such  partial  holiday  or.stop- 
page.  If  longer  detained.  Charterers  to  pay  one  Shilling  per  ton  on  steamer's  net  register  per  day  (per 
running  hour]  demurrage.  No  deduction  of  time  shall  be  allowed  for  stoppages,  unless  due  notice 
be  given  at  the  time  to  the  Master  or  Owner.  If  any  dispute  or  difference  should  arise  under  this 
charter,  same  to  be  referred  to  three  parties  In  the  City  of  New  York,  one  to  be  appointed  by  each  of 
the  parties  hereto,  the  third  by  the  two  so  chosen  and  their  decision,  or  any  of  them,  shall  be  final 
and  binding,  and  this  agreement  may,  for  enforcing  the  same,  be  made  a  rule  of  Court. 

4.  The  Cargo  to  be  trimmed  by  men  appointed  by  the  Charterers  at  the  tariff  rate  of  the  Port. 
5      Bunker  Coals  to  be  kept  properly  separated  from  the  Cargo  to  Charterers'  satisfaction  at  the 

Steamer's  expense  and  the  quantity  to  be  endorsed  on  the  Bills  of  Lading.  If  any  Cargo  is  carried 
In  a  hold  communicating  directly  with  the  Stokeholds,  the  doors  to  be  securely  fastened  on  the 
Cargo  side. 

6.  The  Bills  of  Lading  shall  be  prepared  In  accordance  with  the  Dock  or  Railway  weight  In  the 
form  endorsed  on  Charter,  and  shall  be  endorsed  by  the  Master,  Agent  or  Owner,  weight  unknown 
freight  and  all  conditions  as  per  this  Charter,  such  Bills  ot  Lading  to  be  signed  at  the  Charterers'  or 
Shippers'  Office,  within  twenty-four  hours  after  the  Steamer  Is  loaded. 

7.  The  Act  of  God,  the  King's  Enemies.  Restraints  of  Princes  and  Rulers,  and  Perils  of  the  Seas 
excepted.  Also  Fire.  Barratry  of  the  Master  and  Crew,  Pirates,  Collisions,  Strandlngs  and  Accidents 
of  Navigation,  or  latent  defects  In,  or  accidents  to,  Hull  and/or  Machinery,  and /or  Boilers,  always 
excepted,  even  when  occasioned  by  the  negligence,  default  or  error  in  Judgment  of  the  Pilot.  Master. 
Mariners,  or  other  persons  employed  by  the  Shipowner,  or  for  whose  acts  he  Is  responsible,  not 
resulting,  however,  in  any  case  from  want  of  due  diligence  by  the  Owner  of  the  Ship,  or  by  the  Ship's 
Husband  or  Manager.  Charterers  not  answerable  for  any  negligence,  default,  or  error  in  judgment 
of  Trimmers  or  Stevedores  employed  in  loading  or  discharging  the  Cargo.  The  Steamer  has  liberty 
to  call  at  any  ports  in  any  order,  to  sail  without  Pilots,  to  tow  and  assist  vessels  in  distress,  and  to 
deviate  for  the  purpose  of  saving  life  or  property,  and  to  bunker.  It  Ls  also  mutually  agreed  that  this 
shipment  is  subject  to  all  the  terms  and  provisions  of  and  all  the  exemptions  from  liability  contained 
lalthe  Act  of  Congress  of  the  United  States,  approved  on  the,  13th  day  ot  February,  1893,  and  entitled 
"An  Act  relating  to  Navigation  of  Vessels."  etc. 

8.  The  Cargo  to  be  taken  from  alongside  by  Consignees  at  (Port  of  Discharge.]  Marseilles,  free  oi 
expense  and  risk  to  the  Steamer,  at  the  average  rate  of  six  hundred  (GOO)  tons  per  day.  weather  per- 
mitting. Sundays  and  holidays  excepted,  provided  Steamer  can  deliver  it  at  this  rate:  and  at  Genoa, 
Spezzia,  Naples,  Savona,  Leghorn.  Civlta  at  the  customary  rate  per  day  according  to  the  Italian  scales  for 
discharging  and  stevedoring;  if  longer  detained.  Consignees  to  pay  Steamer  demurrage  at  the  rate  of 

>  Clauses  enclosed  in  [  ]  were  eliminated  from  the  printed  form;  those  In  Italics  were  Inserted  with 
typewriter. 


TRIP  OR  VOYAGE  CHARTERS  223 

Form  70a. — Coal  Charter  Party — Welsh  Form  {Continued) 
one  sMllino  per  net  register  ton  per  running  day  (or  pro  rata  for  part  thereof).  Time  to  commence 
(when  Steamer  is  ready  to  unload  and  written  notice  given,!  from  arrival  of  Steamer  at  or  off  port, 
whether  in  berth  or  not.  In  case  of  strikes,  lockouts,  civil  commotions,  or  any  other  causes  or  acci- 
dents beyond  the  control  of  the  Consignees  which  prevents  or  delays  the  discharging,  such  time  la 
not  to  count  unless  the  Steamer  is  already  on  demurrage.  Consignees  to  effect  the  discharge  of  the 
Cargo,  Steamer  paying  oiio  shilling  at  Marseilles  or  according  to  customary  Italian  scale  if  at  one  of 
above-mentioned  Italian  ports  per  ton  of  20  cwt.,  or  1,015  kilos,  and  providing  only  steam,  steam- 
winches,  winchmen,  gins,  and  fails. 

9.  The  FREIGHT  to  be  paid  in  advance  [it  required  by  the  Owner]  on  signing  Bills  of  Lading 
(ship  lost  or  not  lost),  in  Cash,  less  3  per  cent,  for  Insurance  and  Interest  at  sight  rale  of  exchange; 
I  (the  Owner  or  his  Agents  giving  Charterers  or  Shippers  written  notice  before  the  .Steamer  com- 
mences loading,  if  any  advance  freight  is  required),  and  the  remainder  on  right  delivery  of  the 
Cargo,  In  sufficient  Cash  for  Steamer's  ordinary  disbursements  at  current  exchange,  and  the  balance 
(unless  otherwise  arranged  between  the  Owners  and  Charterers)  by  a  good  and  approved  Bill  on 
London  at  three  Months'  date,  or  In  Cash  equal  thereto  at  Captain's  option.  The  Receiver  of  the 
Cargo  to  be  bound  to  pay  freight  on  account  during  delivery,  if  required  by  the  Captain.  The 
Charterers'  account  at  port  of  loading  to  be  paid  when  rendered,  otherwise  the  Charterc-s  may  deduct 
It  on  settlement  of  freight  at  port  of  destination  (together  with  a  charge  of  three  per  cent,  to  cover  all 
charges   Including   Insurance   and   interest.)] 

10.  The  Steamer  to  be  free  of  address  at  Port  of  Discharge,  but  to  pay  the  usual  Commlasion  ol 
Two  per  cent.,  on  the  amount  of  Freight  on  signing  Bills  of  Lading. 

Charterers  have  option  of  mating  the  Address  Cummi3:Hon  payahle  at  Port  of  Discharge. 

11.  In  case  of  Average,  the  same  to  be  settled  according  to  York/Antwerp  Rules,  1390,  and  as  If 
the  vessel  were  British.  Should  the  vessel  put  into  any  Port  or  Ports  leaky  or  with  damage,  the 
Captain  or  Owner  shall  without  delay  inform  the  Charterers  thereof. 

Captain  to  Telegraph  Charterers  in  case  of  putting  in  anywhere. 

12.  Loading  hours  not  to  commence  before  9  a.  m.  on  August  20th  and  if  .Ship  be  not  ready  In 
loading  dock  as  ordered  before  9  a.  m.  on  September  20th,  1915,  or  if  any  wilful  misrepre.?entation  be 
made  respecting  the  size,  position  or  state  of  the  Steamer,  Charterers  to  have  the  option  of  cancelling 
this  Charter, Jsuch  option  to  be  declared  on  notice  of  readiness  being  given. 

Charterers  to  supply  first  class  bunker  coals  reguired  at  loading  port  at  $3.25  per  ton  of  2,240  lbs.,  if 
Baltimore  or  SS.40  if  Virginia,  trimmed  in  bunkers. 

13.  The  Charterers'  liability  shall  cease  as  soon  as  the  Cargo  Is  shipped,  and  the  advance  of 
Freight,  Dead  Freight,  and  Demurrage  in  Loading  (if  any)  are  paid,  the  owner  having  a  lien  on  the 
Cargo  for  Freight,   Demurrage  and  Average. 

14.  Penalty  for  non-performance  of  this  Agreement,  proved  damages,  not  exceeding  the  estimated 
amount  of  Freight. 

15.  A  commission  of  five  per  cent,  and  the  customary  Freight  Brokerage  is  due  by  the  "Vessel  on 
signing  of  this  Charter  Party  to  BOWRING  &  COMPANY,  Vessel  lost  or  not  lost,  whose  Agents  at 
Port  ol  Loading  are  to  attend  to  ship's  business  on  customary  terms. 

Witness  to  the  Signature  of  (Signed)     Company 

(Signed 

Witness  to  the  Signature  of 

(Signed) As  Agents  by  cable  authority  ol London 

(Signed)    The Co..  Inc. 


charter  unless  in  particular  instances  special  modifying  pro- 
visions were  written  into  the  printed  form.  The  printed  form 
was  modified  only  in  that  the  steamer  was  free  of  weighing 
charges  at  the  ports  of  discharge.  The  sugar  charter  of  the 
United  States  Shipping  Board  which  has  been  used  since  1917 
is  also  a  gross  charter  with  minor  modifications.  The  shipper 
or  his  agent  is  responsible  for  the  expense  of  towing  between 
Savannah  and  the  refinery  at  Port  Wentworth,  and  the  vessel 
is  free  of  weighing  charges  at  ports  of  discharge. 

An  example  of  a  modified  semi-net  charter  party  is  the 
Savannah  (lump  sum)  charter.  Its  charter  rate,  which  is  un- 
usual in  that  it  is  based  upon  net  register  tonnage  of  the 
vessel  instead  of  upon  cargo  tonnage,  is  "in  full  of  all 
port  charges  and  pilotages."  The  "charterers  are  to  pay 
for  loading  cargo  and  compressing  cotton  at  loading  port, 
but  no  other  charges."  The  "asphalt  charter"  commonly  used 
when  steamers  are  chartered  to  carry  asphalt  from  Trinidad 
to  the  United  States  is  primarily  a  net  charter.     It  holds  the 


224       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


charterer  responsible  for  the  expense  of  loading  cargo  at  Brigh- 
ton, Trinidad,  and  for  discharging  it  in  the  United  States,  but 
provides  that  the  steamer  is  ''to  pay  seven  cents  per  long  ton 
for  trimming  asphalt  in  bulk  and  ten  cents  per  long  ton  for 


11 


o      I 


•S  S  ■?  !"  t'  t 


J||||| 


3.1 
i     ^  ! 

1  i  ^  I 

t  5   a  * 


S   i 
■a  5 


5     ^ 


I  5  i 

•5  "a  o 


11 


I   I    ui 


Form  70B. — Reverse  of  70A 

asphalt  in  barrels."  The  so-called  "pixpinus"  charter  governing 
chartered  shipments  of  pitch  pine  requires  the  charterers  to  "pro- 
vide and  pay  a  stevedore  to  do  the  stowing  of  the  cargo  under 
the  supervision  of  the  master,  to  supply  dogs  and  chains  (at 
their  risk),  pay  wharfage,  custom  house  tonnage,  quarantine 
dues  (but  not  fumigating  expenses  or  other  special  charges  con- 


TRIP  OR  VOYAGE  CHARTERS  225 

sequent  upon  sickness  of  the  crew),  and  consular  fees  for  en- 
trance and  clearance,  harbor  master  fees,  and  pilotage  in  and 
out  of  the  port  of  loading,  at  four  dollars  per  St.  Petersburg 
standard  of  165  cubic  feet,  on  the  entire  cargo  taken  on  board 
at  port  of  loading." 

Sufficient  examples  have  been  cited  to  make  it  clear  that 
many  trip  charters  are  neither  gross  nor  net  in  all  respects 
and  that  there  are  many  variations  in  the  charter  provisions 
that  govern  the  rights  and  responsibilities  of  owners  and  char- 
terers. There  are  so  many  special  trip  charters  that  the  greatest 
care  is  essential  on  the  part  of  owners  or  operators,  charterers 
and  ship  brokers  whenever  any  particular  chartering  transaction 
is  undertaken. 


PART  THREE 
OCEAN    RATES   AND   REGULATION 


CHAPTER  XIV 
OCEAN  FREIGHT  CLASSIFICATIONS  AND  TARIFFS 

One  of  the  differences  between  rail  and  ocean  traffic  prac- 
tices is  the  relatively  small  extent  to  which  ocean  freight  is 
classified.  While  railroad  freight  agents  regularly  use  freight 
classifications  in  the  quotation  of  rates,  many  of  the  principal 
ocean  lines  do  not  classify  freight.  In  the  North  Atlantic  trade 
of  the  United  States  with  Europe,  which  is  heavier  than  that 
of  any  other  ocean  route,  no  general  classification  of  freight 
has  been  adopted  by  steamship  lines,  the  only  exceptions  being 
the  German  lines  which  before  the  war  classified  freight  shipped 
from  Germany  to  the  United  States  into  six  classes.  To  date 
the  classification  of  the  ocean  freight  has  been  the  exception 
rather  than  the  rule. 

A  number  of  lines,  however,  have  classified  freight.  The  New 
York  and  Cuba  Mail  Steamship  Company  (Ward  Line),  operat- 
ing from  New  York,  and  the  Kerr  Steamship  Line  and  Wolvin 
Line,  operating  from  New  Orleans  to  Mexican  ports,  provide 
for  three  numbered  classes — 1,  2,  and  3 — and  rate  certain  addi- 
tional articles  at  ly^  and  double  the  first-class  rates.  The  United 
Fruit  Co.  in  its  services  from  New  York  and  New  Orleans  to 
Pacific  ports  in  Colombia,  Ecuador,  Peru  and  Chile  publishes 
tariffs  which  contain  four  numbered  classes  and  additional  rat- 
ings of  double,  four  and  five  times  the  first-class  rates  for  cer- 
tain articles.  The  Panama  Railroad  Steamship  Line  in  its  tariffs 
covering  traffic  from  New  York  to  Colon  and  Cristobal  names 
five  numbered  classes  and  also  higher  ratings  of  1  1-5,  l}^,  and 
double  first-class  and  double  second-class  rates  for  some  iterps ; 
and  in  its  tariffs  covering  traffic  from  New  York  to  Pacific 
ports  in  Colombia,  Ecuador,  Peru  and  Chile  it  provides  four 
numbered  classes  and  lists  some  articles  at  double  and  five 
times  the  first-class  rates.  The  Gulf  Foreign  Freight  Commit- 
tee Lines,  including  the  Atlantic  Steamship  Lines  of  the  South- 
em  Pacific  Railroad,  the  Munson  Line,  United  Steamship  Com- 

229 


230       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

pany,  Peninsular  and  Occidental  Steamship  Company,  and  the 
United  Fruit  Company  classify  traffic  shipped  from  Key  West, 
New  Orleans  and  Galveston  to  Havana  and  Cuban  out  ports 
into  the  classes  provided  for  in  the  Official  Classification  of  the 
eastern  trunkline  railroads,  i.e.,  six  numbered  classes,  two  rules 
(Rule  25  and  26)  and  in  certain  instances  multiples  of  Gass 
No.  1. 

The  failure  of  many  ocean  lines  to  classify  freight  traffic  is 
due,  at  least  in  part,  to  the  presence  of  tramp  competition,  to 
the  competitive  character  of  berth  cargoes,  to  the  making  of 
traffic  arrangements  for  shippers  in  many  instances  by  for- 
warders, and  to  the  long-standing  custom  of  charging  ocean  rates 
at  stated  amounts  per  ton,  weight  or  measurement,  ship's  option. 

Ocean  Tariffs 

Although  the  publication  of  rate  tariffs  by  ocean  steamship 
lines  is  somewhat  more  common  than  the  classification  of  ocean 
freight,  the  relative  scarcity  of  published  ocean  tariffs  is  like- 
wise in  sharp  contrast  with  railroad  practice.  Steamship  lines 
engaged  in  the  coastwise  trade  are  under  the  shipping  act  of 
1916  required  to  publish  tariffs  showing  their  maximum  charges 
and  to  file  them  with  the  Shipping  Board,  but  those  engaged  in 
the  foreign  trade  are  not  required  to  do  so. 

It  is  the  exception  rather  than  the  rule  for  steamship  lines 
engaged  in  the  foreign  trade  to  publish  rate  tariffs.  Instances 
that  may  be  cited  include  the  lines  operating  between  the  United 
States  and  the  ports  of  Mexico  and  the  West  Indies;  those 
operating  between  the  United  States  and  the  west  coast  of  South 
America;  and  some  of  the  trans-Pacific  steamship  lines.  Rates 
were  published  by  the  German  lines  on  westbound  traffic  from 
Germany  to  the  United  States  in  connection  with  the  freight 
classification  mentioned  above,  and  steamship  agents  at  various 
American  ports  have  published  so-called  rate  cards  showing 
rates  to  European  ports,  but  the  North  Atlantic  steamship  lines 
do  not  regularly  publish  tariffs.  The  trades  between  the  Atlantic 
ports  of  the  United  States  and  Australasia,  the  Orient,  Africa, 
and  the  east  coast  ports  of  South  America  are  also  characterized 
by  a  general  absence  of  published  tariffs.  The  freight  agents  of 
steamship  lines  that   do  not  publish  tariffs  are  provided  with 


FREIGHT  CLASSIFICATIONS  AND  TARIFFS 


231 


tariffs  or  rate  sheets  for  their  own  use  in  quoting  rates,  but  the 
shipper  is  usually  not  permitted  to  consult  these  unpublished 
tariffs. 

Published  ocean  freight  tariffs,  moreover,  are  confined  to  the 
regular  line  service.  The  rates  at  which  tramp  vessels  are 
chartered,  except  during  the  war  emergency,  when  they  were 
under  direct  Government  control,  fluctuate  almost  constantly,  and 
very  largely  in  accordance  with  current  changes  in  the  relation 
between  the  supply  of  and  demand  for  tonnage.  Charter  rates 
in  normal  times  have  not  been  stabilized  in  published  or  un- 
published tariffs;  each  charter  rate  has  usually  been  the  result 
of  bargaining. 

The  contents  of  published  ocean  tariffs  may  be  divided  into 
three  main  parts.  In  case  the  issuing  lines  classify  freight  traffic, 
one  part  contains  a  statement  of  such  classification  and  a  list  of 
classified  articles  with  the  class  assigned  to  each.  A  second 
part  contains  the  published  freight  rates, — class  rates  for  each 
class  in  case  the  issuing  lines  classify  freight,  and  commodity 
rates  for  each  of  the  various  commodities  contained  in  an  al- 
phabetically arranged  list.  There  may  also  be  general  cargo 
rates  per  ton,  weight  or  measurement,  to  cover  articles  not  as- 
signed specific  class  or  commodity  rates.  The  sample  page  show- 
ing class  and  commodity  rates  from  shipside  New  York  to 
Tampico,  Vera  Cruz,  Puerto  Mexico,  and  Progreso,  Mexico,  is 
taken  from  the  published  tariff  of  the  New  York  and  Cuba  Mail 
Steamship  Company.     (See  Table  I.) 


TABLE  I 
Sample  Page  from  Ocean  Tariflf  Stating  Class  and  Commodity  Rates. 

Item  22  CLASS   RATES 


TO 


Tampico  (See  Item  21)...^^^^     1 00  lbs. 


1 .  125  cu.  ft. 

2.25 


Vera  Cruz 
Puerto  Mexico 
Frogreso 


fl.I2§   c 

\2.25     I 


h  cu.  ft. 
00  lbs. 


1 .  12J  cu.  ft. 

2.25  100  lbs. 

ri.i6|  cu.  ft. 

\2.32l  100  lbs. 


52 1  cu.  ft. 

65  100  lbs. 

52 1  cu.  ft. 

05  100  lbs. 

52§  cu.  ft. 

05  100  lbs. 

56I  cu.  ft. 

12J  100  lbs. 


45  cu.  ft. 

90  100  lbs. 

45  cu.  ft. 

90  100  lbs. 

45  cu.   ft. 

90  100  lbs. 

49  cu.    ft. 
972  100  lbs. 


232       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 


Item  23 


COMMODITY   RATES 


COMMODITY 


Per 


Tampico     Vera 
(See  Item  21)  Cruz 


Puerto  Progreso 
Mexico 


Acid,  Muriatic  and  Sulphuric, 
in  carboys,  not  exceeding 
255  lbs.  each 

Acid,  Sulphuric,  in  iron  drums 

Automobiles,  Boxed 

Bags  and  Sacks,  Jute 

Barley 

Beans,  viz.: 

Cocoa 

Vanilla 

Blankets 


Carboy $4.72^ 

100  lbs 1.50 

Cu.  ft 30 

100  lbs 

100  lbs 75 


Bonds  and  Stocks 

Bran 

Brick,  Common  or  Fire 

Bullion,  Gold  and  Silver  Bars 

and  Bullion 

Cement,  in  barrels 

Cement,  in  bags 

Clay,  Fire  or  Common 

Coal 

Codfish,  in  cases 

Corn 

Cornmeal 

Cornstarch 

Currency  (Except  Specie) 

Diamalt 

Fertilizer 

Flour,  Corn,  Rye  and  Wheat. 

Formaldehyde 

Gasoline 

Grease  (Soapstock) 

Glucose 

Hay 

Iron  and  Steel  Articles,  viz. : 

Angle ' 

Band 

Bar 

Beams 

Beams,  brake 

Boiler 

Bolts 

Cams,  Dies,  Heads,  Shoes 
and  Tappets  (Cast  Iron 
or  Steel)  for  Stamp  Mills 

Chain 

Channels 


Cu.  ft. 

Ad  Valorem. 

Cu.  ft. 

or 
100  lbs. 
Ad  Valorem. 

100  lbs 75 

100  lbs 75 


.4I3 

lV6% 
.90 

lV6% 


Cu.  ft. 

or 
100  lbs. 


■  35 
.70 


54-723 

1.50 
.30 
.56^ 
•75 

•  41I 

iV6% 


$4-72§ 
1.50 
•30 
.56i 
•75 

.41J 


Ad  Valorem.     iV6% 

100  lbs 44 

100  lbs 50 

100  lbs 75 

Special 

100  lbs 90 

100  lbs 75 

100  lbs 75 

100  lbs 75 

Ad  Valorem.       ^% 

TOO  lbs 84 

100  lbs 75 

100  lbs 75 

100  lbs 1.23 

100 lbs 3.60 

100  lbs 75 

100  lbs 75 

Special 


•35 
.70 


$4 


95 
49 


.90 

•75 
•75 

iVb% 

•44 

•50 

•75 
Special 

.90 

•75 

•75 

•75 
H% 

.84 

•75 

•75 
1.23 
3.60 

•75 

•75 
Special 


.90 


•45 
■97l 


lV6%        lV5% 

.75  -82^ 

•75  •82I 


lV6% 

•44 

•50 

•75 
Special 

.90 

•75 

•75 

•75 

5/8% 

.84 

•75 

•75 
1.23 
3 -60 

•75 

•75 
Special 


lV6% 

.66^ 

•83 
.82^ 
Special 

!82i 

.82§ 

.82^ 
M% 
•  91^ 
.82^ 
.82^ 
1.302 
3^67i 
.82^ 

.82^ 

Special 


•  35 
.70 


•39 

.77f 


A  third  part  of  the  ocean  tariff  contains  the  shipping  rules 
that  shall  govern.  While  no  standard  code  of  tariff  rules  has 
been  adopted,  the  following  may  be  noted  as  typical  of  their 
general  character :  a  statement  to  the  effect  that  the  rates  con- 


FREIGHT  CLASSIFICATIONS  AND  TARIFFS  233 

tained  in  the  tarifif  are  subject  to  change  without  notice;  that 
commodity  rates  take  precedence  over  any  class  rates  that  may 
be  published ;  that  a  mixture  of  various  articles  in  a  single  pack- 
age takes  the  highest  rate  for  any  article  included;  that  the 
published  rates  are  based  upon  a  stated  value  limit,  and  that 
articles  of  greater  value  are  required  to  pay  the  published  rates 
plus  a  stated  percentage  of  their  value ;  that  the  minimum  charge 
shall  be  that  expressed  in  the  line's  bills  of  lading;  that  rates 
shall  be  prepaid,  although  this  is  not  a  universal  practice ;  that 
the  published  rates  do  not  include  marine  insurance ;  and  that 
certain  named  articles,  such  as  glassware,  crockery,  and  fragile 
articles  as  to  breakage,  oil  and  liquids  as  to  leakage,  and  perish- 
able goods  as  to  frost,  heat  and  decay,  and  deck  cargoes  are 
accepted  at  owner's  risk.  Packing  requirements  are  also  con- 
tained in  some  of  the  published  ocean  tariffs,  and  when  livestock 
is  shipped  the  shipper  may  be  required  to  arrange  for  their  feed 
and  attendance,  or  if  the  ship's  crew  cares  for  the  livestock,  to 
pay  for  such  service  in  accordance  with  a  scale  of  pay  published 
in  the  tariff. 

During  the  war,  when  rates  reached  an  unprecedented  level, 
a  so-called  war  surcharge  was  provided  for  in  some  of  the 
tariffs.  In  some  instances  the  payment  of  "primage,"  constitut- 
ing 5  or  10  per  cent,  of  the  freight  charges,  is  still  provided  for. 
In  the  past  primage  was  a  special  charge  to  provide  a  fund  for 
the  officers  and  crew  in  order  to  encourage  care  in  loading  and 
storing  cargo,  but  it  has  in  later  years  been  merely  an  addition 
to  the  freight  charges  to  be  disposed  of  by  the  steamship  line 
in  its  discretion.  Many  lines  have  abandoned  the  practice  of 
charging  primage. 

Tariff  rules  may  also  contain  provisions  to  the  effect  that  the 
published  rates  do  not  apply  if  the  weight  of  a  package  exceeds 
a  stated  maximum  amount.  The  number  of  copies  of  the  bill 
of  lading  to  be  provided  for  the  carrier's  use  may  be  stated. 
The  contents  of  the  bill  of  lading  as  to  the  naming  of  the  con- 
signee, the  statement  of  weights  for  each  item  or  in  other  re- 
spects may  be  defined,  and  the  tariff  may  for  the  convenience  of 
the  freight  agent  and  shipper  contain  the  principal  consular  re- 
quirements of  the  foreign  countries  to  which  the  cargoes  are 
destined. 

Published  ocean  tariffs  do  not  necessarily  contain  all  the  rates 


234       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

actually  charged  by  the  issuing  lines,  and  the  published  rates  have 
not  always  been  strictly  adhered  to.  They  are  moreover  applic- 
able only  to  the  regular  cargoes  of  the  steamship  lines,  the  rates 
at  which  berth  cargoes  are  accepted  being  highly  competitive  in 
character  and  usually  subject  to  bidding  between  lines  and 
tramps  and  between  the  lines  themselves.  Much  freight  is  also 
covered  by  time  contracts,  in  which  special  rates  are  granted  to 
shippers  who  in  return  for  such  rates  and  an  assured  service 
agree  to  book  with  the  contract  lines  all  or  a  specified  part  of 
their  overseas  shipments  to  certain  ports  during  agreed  periods. 

Ocean   Rate   Quotations 

In  the  past  the  general  practice  of  ocean  lines  in  quoting 
rates  was  to  state  them  at  a  given  number  of  dollars  and  cents 
or  shillings  and  pence  per  ton,  weight  or  measurement,  ship's 
option.  There  was  little  if  any  difference  between  the  rates  on 
different  commodities.  The  rate  at  a  particular  time  was  so 
much  per  ton  and  the  ship  operator  had  the  option  of  computing 
the  freight  charge  either  on  the  basis  of  an  avoirdupois  ton  of 
weight  or  a  measurement  ton  of  space.  The  weight  ton  usually 
was  the  long  ton  of  2,240  lbs.,  and  the  measurement  ton  usually 
represented  40  cubic  feet.  It  depended  upon  the  bulky  or 
weighty  character  of  a  commodity  as  to  whether  it  would  go  as 
weight  or  measurement  cargo,  and  the  carrier  had  the  option  of 
selecting  the  basis  which  yielded  the  greater  revenue. 

In  later  years  the  practice  of  charging  different  rates  for  dif- 
ferent commodities  became  more  common,  but  many  of  these 
rates  continue  to  be  quoted  on  the  basis  of  the  ton,  weight  or 
measurement,  ship's  option.  More  ocean  line  rates  are  quoted 
on  this  basis  than  on  any  other.  The  weight  ton  is  the  English 
ton  of  2,240  lbs.,  or  less  commonly  the  metric  ton  of  2,240.6  lbs., 
or  the  short  ton  of  2,000  lbs.  The  measurement  ton  is  40  cubic 
feet,  unless  in  connection  with  particular  commodities  it  is  spe- 
cifically defined  otherwise.  The  option  possessed  by  the  carrier 
when  rates  are  quoted  on  this  basis  is  highly  important  to  both 
the  steamship  line  and  the  shipper.  A  rate  of  $25  per  ton, 
for  example,  would  in  case  of  a  package  weighing  2,240  lbs.,  but 
measuring  60  cubic  feet,  mean  the  collection  of  $30  instead  of 
$25,  as  the  published  rate  of  $25  per  ton  is  the  equivalent  of  50 
cents  per  cubic  foot. 


FREIGHT  CLASSIFICATIONS  AND  TARIFFS  235 

Many  ocean  line  rates  are  quoted  in  terms  of  smaller  units 
than  the  ton,  the  carrier,  however,  retaining  an  option  as  between 
the  weight  and  measurement  basis.  Two  rates  may  be  quoted 
for  a  particular  class  or  commodity,  one  at  so  much  per  100 
lbs.  and  the  other  at  a  stated  amount  per  cubic  foot,  the  carrier 
charging  whichever  in  a  particular  shipment  results  in  the 
larger  sum. 

There  are  also  many  instances  in  which  the  optional  rule  is 
not  specifically  applied  in  connection  with  particular  commodi- 
ties, although  their  relative  weight  and  measurement  is  consid- 
ered in  fixing  such  rates.  Thus,  grain  rates  are  sometimes  quoted 
per  bushel  or  per  quarter  of  defined  weight ;  flour,  per  bag  or 
barrel;  coffee,  per  bag;  case  oil,  per  case;  liquids,  acids,  etc.,  per 
carboy,  drum,  or  similar  unit;  lumber,  per  M  feet;  cement, 
barbed  wire,  and  other  commodities,  per  weight  ton;  rosin,  per 
280  lbs. ;  cotton  or  wool,  per  bale ;  bricks,  per  M ;  dynamite, 
per  pound;  or  live  animals,  per  head.  The  use  of  specific  units 
other  than  weight  or  measurement  for  quoting  rates  is  mainly 
confined  to  those  trades  in  which  standardized  bags,  cases,  bales, 
or  other  commercial  units  have  been  widely  adopted  by  ship- 
pers. 

Rates  may  also  be  quoted  in  terms  of  a  percentage  of  a  com- 
modity's value.  Shipments  of  gold  bullion  or  coin  are  in  many 
instances  assigned  an  "ad  valorem"  rate,  equal  to  5^  of  1  per  cent. 
or  other  per  cent,  of  their  value.  The  extra  rates  charged  over 
and  above  the  regularly  quoted  rates,  in  case  a  shipment  of  any 
kind  of  cargo  exceeds  the  value  limit  fixed  in  the  tariff  rules  or 
bill  of  lading,  are  also  in  many  instances  fixed  at  a  percentage  of 
the  commodity's  value. 

The  charter  rates  or  hire  paid  to  the  owner  of  a  vessel 
operated  under  a  trip  or  voyage  charter,  as  in  the  case  of  line 
freight  rates,  are  usually  based  upon  the  weight  ton,  measure- 
ment ton,  or  other  unit  of  the  particular  commodity  that  is  being 
shipped.  Under  time  charters  the  payment  to  the  owner  is 
usually  based  upon  the  deadweight  tonnage  of  the  vessel  if  it  is 
a  cargo  carrier,  and  upon  the  gross  register  tonnage  of  the  vessel 
if  it  is  a  passenger  steamship.  Lump  sum  payments  and  other 
variations  from  the  usual  practices  in  the  chartered  service  have 
been  more  fully  discussed  in  the  chapters  dealing  with  charter 
parties. 


CHAPTER  XV 

OCEAN  RATE-MAKING 

The  distinction  between  ocean  line  and  chartered  freight 
services  that  was  noted  in  connection  with  their  organization 
and  management  is  equally  fundamental  in  a  discussion  of  ocean 
freight  charges.  Line  and  charter  rates  are  made  differently; 
their  bases  are  different  and  the  forces  influencing  them  differ 
in  some  respects. 

Ocean    Line   Rate-Making 

Before  the  war  the  ocean  conferences  described  in  Chapter  V 
provided  the  organization  or  machinery  through  which  most  of 
the  freight  rates  of  ocean  lines  were  determined.  Their  im- 
portance was  reduced  during  the  war  when  the  general  level  of 
rates  reached  a  high  point,  when  the  lines  had  no  difficulty  in 
obtaining  cargoes,  and  when  the  rates  of  many  lines  were  subject 
to  direct  government  control ;  but  when  the  emergency  created 
by  the  war  disappears  there  is  every  likelihood  that  the  lines  will 
again  make  their  rates  cooperatively  through  conferences.  In 
some  instances  the  actual  rates  were  agreed  upon;  in  others  the 
rate  agreements  provided  minimum  rates  below  which  the  actual 
charges  of  the  conference  lines  would  not  go  but  above  which 
they  would  fluctuate  as  fixed  by  the  individual  lines ;  and  some 
rate  agreements  extended  differential  rates  to  indirect  lines  or 
to  direct  lines  providing  inferior  services  so  as  to  enable  them 
to  share  in  the  available  traffic.  As  the  bulk  of  the  export  trade 
of  the  United  States  was  carried  in  foreign  vessels,  many  of 
which  were  operated  by  foreign  steamship  lines,  the  line  rates 
on  exports  were  in  some  instances  established  by  conference 
committees  located  in  foreign  ports.  In  other  instances  the  con- 
ferences were  conducted  at  American  ports. 

The  governing  principle  of  the  conferences  in  making  ocean 
line  freights  has  been  to  fix  them  at  "what  the  traffic  will  bear."^ 

236 


OCEAN  RATE-MAKING  237 

The  cost  of  the  service  and  the  length  of  the  voyage  are  not  the 
principal  rate  factors.  The  Hnes  aim  to  maintain  their  rates  at 
a  level  which  will  yield  the  largest  revenues  in  the  long  run 
rather  than  for  a  single  voyage.  Rates  fixed  at  what  the  traffic 
will  bear  are  not,  in  periods  of  normal  business,  set  at  the  high- 
est possible  level  consistent  with  the  moving  of  such  traffic  as 
is  awaiting  shipment,  for  maximum  revenues  depend  in  part 
upon  the  steady  development  of  the  volume  of  ocean  traffic.  The 
exorbitant  charges  demanded  during  the  war,  when  there  were 
more  cargoes  than  available  ocean  tonnage,  temporarily  set  aside 
the  usual  desire  of  the  lines  to  develop  traffic.  It  is  worthy  of 
note  that  charter  rates  in  the  tramp  service  which  are  largely  the 
result  of  bargaining  and  are  not  made  by  conferences,  likewise 
advanced  rapidly  when  hostilities  began  in  Europe. 

In  fixing  line  rates  at  what  the  traffic  will  bear  the  conferring 
agents  have  usually  been  forced  to  consider  the  competitive 
forces  which  in  all  ordinary  peace  times  have  persisted  in  ocean 
shipping  and  international  commerce.  While  the  prevalence  of 
line  conferences  makes  it  clear  that  regular  line  rates  are  not  the 
result  of  unrestricted  competition,  it  is  equally  clear  that  the 
occasional  arbitrary  advance  or  maintenance  of  a  rate  does  not 
comprise  evidence  that  the  conference  lines  have  a  complete 
monopoly  over  line  rates. 

"Some  competition  between  conference  steamship  lines  per- 
sists even  though  they  cooperate  in  the  making  of  their  charges. 
The  conferences  control  and  restrict  rather  than  eliminate  com- 
petition. Even  when  the  absolute  rates  are  fixed  in  conference 
committee  meetings,  the  effects  of  competition  are  not  v/holly 
avoided,  for  the  wishes  of  the  weak  and  strong  conference  lines 
need  to  be  heeded.  Their  competition  is  verbal  rather  than 
physical.  Its  form  is  changed  and  its  severity  modified,  but  its 
life  is  not  extinguished.  On  some  routes,  moreover,  certain  in- 
dependent lines  continue  to  operate,  although  the  competition 
maintained  by  them  is  limited. 

"A  distinction  needs  to  be  made  between  the  regular  cargo 
rates  of  ocean  lines  and  their  so-called  'berth  cargo'  rates. 
The  berth  cargo  of  lines  consists  mainly  of  commodities  such  as 
grain  or  case  oil  which  line  vessels  frequently  carry  to  fill  surplus 
cargo  spaces  not  taken  up  by  traffic  which  they  carry  at  regular 
line  rates.     Berth  cargo  rates  are  frequently  reduced  to  a  low 


238       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

level  at  large  ports,  such  as  New  York,  which  are  served  by  many 
regular  lines.  At  times  such  cargoes  are  carried  in  lieu  of  bal- 
last, and  their  rates  are  regarded  as  profitable  so  long  as  they 
yield  anything  over  and  above  the  immediate  costs  incurred  in 
handling  them.  They  are  explicitly  excluded,  in  many  instances, 
from  the  commodities  whose  actual  or  minimum  rates  are  fixed 
in  conference;  or  are  subjected  to  only  a  modified  amount  of 
control.  The  minimum  rate  agreements  of  the  lines  operating 
between  the  United  States  and  the  United  Kingdom  before  the 
outbreak  of  the  war  in  Europe,  for  example,  did  not  cover  grain, 
flour,  oil  cakes,  cotton  and  similar  heavy,  bulky  commodities. 
In  regard  to  grain,  the  lines  merely  agreed  not  to  accept  more 
than  specified  quantities  per  vessel  at  less  than  three  cents  per 
bushel. 

"Although  ocean  liners  and  tramp  vessels  are  mainly  engaged 
in  different  services,  the  rates  charged  for  the  services  of  ocean 
lines  are  nevertheless  influenced  to  some  extent  by  tramp  com- 
petition. The  competition  is  particularly  acute  in  the  fixing  of 
berth  cargo  rates,  because  the  commodities  carried  by  lines  as 
berth  cargoes  are  especially  adapted  to  transportation  in  ship- 
load lots.  At  large  ports,  for  example,  where  many  lines  con- 
gregate, the  lines  sometimes  obtain  most  of  the  grain  cargoes, 
but  at  rates  that  are  in  a  large  measure  influenced  by  tramp 
competition. 

"The  general  cargo  rates  of  the  lines  are  less  subject  to  tramp 
competition,  but  even  they  are  not  wholly  free  from  its  influence. 
Shippers  of  iron  and  steel  manufacture,  and  other  heavy  goods 
that  may  be  shipped  either  in  ship-load  lots  or  as  general  cargo, 
frequently  have  a  choice  of  services;  and  should  the  line  rates 
on  general  cargo  that  is  usually  handled  almost  exclusively  by 
the  lines  become  unreasonable  as  compared  with  the  cost  of 
chartering  vessels,  tramp  competition  may  at  any  time  become 
an  active  factor.  As  is  stated  by  Mr.  P.  A.  S.  Franklin,  presi- 
dent of  the  International  Mercantile  Marine  Company,  the  tramp 
service  is  under  such  conditions  available  both  to  small  and  large 
shippers : 

Neither  the  large  nor  the  small  shipper  is  ever  at  the  mercy  of  the 
steamship  lines  if  rates  advance  to  a  point  which  may  be  thought  to 
be  unreasonable.  If  the  rates  exceed  or  even  approximate  the  rates  at 
which  tramp  steamers  can  be  chartered,  large  shippers  of  special  com- 
modities immediately  protect  themselves  by  the  employment  of   tramps 


OCEAN  RATE-MAKING  239 

for  the  transportation  of  their  shipments;  and  small  individual  shippers, 
who  cannot  accumulate  merchandise  in  quantities  sufficient  to  justify 
the  chartering  of  tramp  steamers,  are  at  such  times  served  by  chartering 
brokers,  who  are  always  ready,  when  rates  by  the  regular  lines  advance 
to  such  a  point  that  a  profit  can  be  made  by  chartering,  to  lay  chartered 
steamers  on  the  berth,  themselves  accumulating  the  shipments  of  num- 
bers of  small  merchants,  who  by  this  means  can  always  protect  them- 
selves against  oppression. 

"When  a  tramp  vessel  is  placed  on  the  berth  by  a  ship  broker 
or  speculator  as  here  stated,  it  is,  of  course,  not  engaged  in  the 
tramp  service  as  that  service  is  ordinarily  conducted  and  under- 
stood; the  tramp  is  temporarily  engaged  as  a  general  carrier. 
It  is,  however,  from  among  the  world's  fleet  of  tramps  that 
such  vessels  are  chartered. 

"Ocean  line  rates  are  further  influenced  by  the  indirect  compe- 
tition known  as  'market'  or  'commercial'  competition.  Many 
American  exports  to  non-European  markets,  for  example,  need 
to  be  marketed  in  competition  with  similar  goods  offered  by 
European  exporters.  This  obliges  the  lines  serving  thie  ex- 
porters of  the  United  States  to  maintain  a  degree  of  parity  be- 
tween their  rates  and  those  in  effect  from  Europe  to  a  given 
competitive  market.  The  effect  of  this  competition  is  similar  to 
the  well-known  force  of  industrial  and  commercial  competition 
upon  railroad  charges,  but  differs  in  that  it  is  more  largely  in- 
ternational in  scope.  Its  influence  upon  the  rate  activities  of 
ocean  conferences  is  clearly  shown  in  the  following  statement 
by  Mr.  WilHam  Boyd,  president  of  Houlder,  Weir  &  Boyd,  Inc. : 

Deprived  of  the  protection  offered  by  the  system  of  rebates  or  some 
other  effective  tie  upon  the  shipper,  the  existence  of  conferences  depends 
entirely  upon  affording  the  shipper  a  satisfactory  service  and  reasonable 
rates.  This  is  the  position  of  the  American  conference.  Theoretically, 
working  under  an  agreerrent  in  a  trade  where  there  is  no  outside  com- 
petition, conferences  can  arbitrarily  fix  rates.  They  do  fix  them,  but 
they  cannot,  because  of  the  international  character  of  the  over-sea  trade 
and  the  freedom  of  the  ocean  to  everything  that  floats,  maintain  an 
unreasonable  rate  for  any  length  of  time.  An  unreasonable  rate  on 
any  commodity  can  result  only  in  that  commodity  being  supplied  by 
some  other  country,  and  the  loss  of  its  carriage  to  the  conference  lines. 
This  would  not  be  good  business,  nor  would  it  be  good  policy. 

.  .  .  The  whole  history  of  the  shipping  business  has  proved  the  folly 
of  conferences  which  tried  to  trade  upon  an  apparent  monopoly,  and 
experience  and  self-interest  have  evolved  the  present-day  conference 
idea,  which  is  combination  for  the  development  of  trade,  and  restraint 
only  of  wasteful  competition  amongst  themselves.  It  must  surely  b? 
evident  that,  in  a  business  where  the  buyer  has  the  opportunity  of  buying 


240       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

in  the  United  States,  England,  Germany,  Belgium  or  France,  the  carrying 
line  from  America  must  help  the  American  seller  or  shipper  to  make 
his  sale.  If  the  sales  are  not  made,  there  is  no  freight  to  carry.  The 
proper  answer  to  the  question  therefore  is,  that  while  theoretically  a 
conference  enables  the  lines  to  establish  rates,  such  rates  cannot  be 
arbitrary,  but  must  be  reasonable.  Self-interest  demands  that  they  must 
enable  the  shipper  or  merchant  to  compete  with  the  shipper  or  merchant 
of  other  manufacturing  countries. 

"Market  competition  also  exerts  an  influence  over  the  relative 
ocean  rates  charged  to  or  from  different  ports  of  the  United 
States.  The  rates  from  American  ports  to  Cuba,  as  described 
in  the  report  of  the  Committee  on  the  Merchant  Marine  and 
Fisheries,  are  typical : 

It  may  be  added  that  the  rates  from  New  York  are  about  the  same 
as  those  from  the  Gulf  ports,  and  that  in  the  case  of  most  articles  it 
would  be  impossible  for  the  Gulf  ports  to  enjoy  a  differential  since 
the  Atlantic  lines  would  meet  the  rates.  .  .  .  The  New  York  and  Cuba 
Mail  Line,  the  principal  line  from  New  York,  is  a  member  of  the  Gulf 
Foreign  Freight  Committee  for  the  purpose,  as  stated  by  the  manage- 
ment of  the  line,  that  "we  may  obtain  information  as  to  the  freight  rates 
from  the  Mississippi  Valley  to  the  seaboard  and  from  the  Gulf  to  the 
Cuban  ports  in  order  to  enable  us  to  meet  their  competition."  Only 
in  the  case  of  grain  and  packing-house  products,  because  of  the  greater 
nearness  to  the  territory  producing  the  same,  do  the  Gulf  lines  probably 
make  the  rates,  the  same  being  followed  by  the  New  York  lines  with 
a  view  to  developing  trade  from  their  territory. 

"The  rate  parity  maintained  between  competitive  countries  and 
rival  ports  is  by  no  means  absolute.  Yet  a  relationship  is  main- 
tained, and  this  is  ordinarily  true  even  when  the  services  avail- 
able to  American  shippers  are  offered  under  foreign  flags.  Fla- 
grant discriminations,  however,  have  occurred  at  times,  and 
these,  although  they  are  exceptional,  have  contributed  their 
share  to  the  desire  for  a  larger  American  deep-sea  marine  and 
for  a  measure  of  public  regulation.  Unfair  discriminations  are 
less  likely  to  occur  in  the  future,  because  the  Shipping  Board, 
mentioned  above,  has  the  power  to  correct  any  rate  that  is  un- 
justly discriminatory  between  shippers  or  ports  or  against  'ex- 
porters of  the  United  States  as  compared  with  their  foreign 
competitors.'  Even  in  the  absence  of  regulation  the  transporta- 
tion disadvantages  of  American  exporters  have  sprung  mainly 
from  unequal  services  rather  than  from  unequal  ocean  rates. 

"Although  ocean  line  rates  are  largely  determined  in  confer- 
ence in  accordance  with  the  commercial  requirements  of  inter- 


OCEAN  RATE-MAKING  241 

national  commerce  and  the  limits  set  by  direct  and  indirect  com- 
petition, various  additional  rate  factors  are  instrumental.  The 
value  of  the  commodities  carried  is  considered  in  determining 
what  the  traffic  will  bear.  Particularly  is  this  the  case  when 
different  rates  are  assigned  to  different  commodities,  or  when 
an  ocean  line  adopts  a  freight  classification. 

"Ocean  line  rates  are  also  influenced  by  differences  in  the  value 
of  the  services  rendered.  Slower  or  indirect  lines  are  frequently 
accorded  differentials  because  the  value  of  their  service  is  less 
than  that  of  faster  or  more  direct  lines,  and  unless  their  rates 
are  lower  they  would,  in  years  of  normal  shipping,  fail  to  ob- 
tain their  proportionate  share  of  the  traffic.  The  value  of  the 
service  likewise  determines  the  maximum  above  which  neither 
individual  class  and  commodity  rates  nor  ocean  line  rates  as  a 
whole  can  be  permanently  maintained. 

"The  relative  supply  of,  and  demand  for,  tonnage  and  cargoes 
influence  line  rates  somewhat.  Ocean  conferences  tend  to  pre- 
vent the  constant  rate  fluctuations  which  would  occur  if  supply 
and  demand  were  the  sole  consideration,  but  the  conference 
lines  are  not  loth  to  increase  their  charges  in  case  a  shortage  of 
tonnage  should  occur.  Neither  could  they  maintain  their  line 
rates  at  a  high  level  throughout  a  long  period  of  insufficient 
shipping  and  surplus  tonnage.  The  exorbitant  advance  in  ocean 
rates  since  the  outbreak  of  the  war  in  Europe  is  due,  in  large 
part,  though  not  entirely,  to  a  relative  shrinkage  in  available 
ocean  tonnage.  The  gradually  increasing  volume  of  freight  as 
against  the  reduction  in  active  merchant  tonnage  caused  by  the 
destruction  of  belligerent  and  neutral  tonnage,  the  seizure  of 
merchant  ships  for  transport,  hospital,  supply  and  other  war 
purposes,  the  enforced  idleness  of  nearly  the  entire  ocean  ton- 
nage of  Germany  and  Austria,  and  the  reduced  merchant  ton- 
nage output  of  the  world's  shipyards  during  the  first  two  years 
of  the  European  War,  have  enabled  the  lines  as  well  as  the 
ocean-going  tramps  to  raise  their  rates  to  an  unprecedented  level. 
Conditions  of  supply  and  demand  frequently  cause  wide  varia- 
tions in  opposite  directions  over  a  particular  route. 

"It  is  clear  that  line  rates  are  fixed  primarily  at  what  the  traffic 
will  bear,  i.e.,  in  accordance  with  the  commercial  and  competi- 
tive forces  mentioned  above ;  yet  the  cost  of  the  services  rendered 
by  the  lines  is  also  a  rate  factor.    Cost  of  the  service  influences 


s 


242       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

line  rates  in  two  general  ways.  First,  it  determines  the  minimum 
below  which  the  general  level  of  line  rates  on  a  given  route  may 
not  long  be  maintained.  The  lines  do  not  establish  their  rates 
by  computing  their  total  costs  and  adding  to  this  an  amount  to 
yield  a  profit,  but  they  resist  any  reduction  that  causes  rates  to 
be  lowered  to  the  cost  of  the  service,  and  they  advance  their 
rates  in  case  their  costs  rise  to  a  higher  level  and  commercial 
j  conditions  do  not  prevent.  A  portion  of  the  increase  in  ocean 
}  rates  since  the  outbreak  of  the  war  is  traceable  to  the  resulting 
increase  in  insurance  costs,  terminal  charges  and  running  ex- 
penses, including  the  outlay  for  wages,  supplies  and  fuel.  Should 
the  costs  of  a  particular  line,  however,  differ  widely  from  those 
of  competitive  lines  or  other  lines  performing  similar  services, 
it  may  at  times  find  itself  unable  to  maintain  its  rates  at  a  profit- 
able level. 

"The  second  way  in  which  the  cost  of  service  influences  line 
rates  has  to  do  with  the  making  of  the  rates  on  particular  com- 
modities as  distinct  from  the  general  level  of  all  line  rates. 
Particular  rates  are  seldom  based  upon  the  total  cost  of  service 
chargeable  to  an  individual  commodity  on  a  cost  accounting 
basis.  Should  special  expenses  of  any  kind,  however,  arise  in 
connection  with  a  particular  article,  it  may  be  obliged  to  pay 
a  higher  rate  than  other  commodities,  provided  always  that  com- 
mercial conditions  do  not  prevent  such  action.  In  case  trans- 
shipment costs  are  incurred,  moreover,  or  special  expenses  arise 
in  handling  a  consignment  in  port,  the  special  amounts  are,  in 
many  instances,  added  to  the  line  rates  in  the  freight  bill  that  is 
submitted  for  payment.  The  extent  to  which  particular  rates 
are  influenced  by  the  cost  of  service  depends  in  a  large  measure 
upon  whether  the  commodity  in  question  is  relatively  free  from 
or  subject  to  competition. 

"Since  distance  or  the  length  of  an  ocean  voyage  is  a  cost-of- 
service  factor,  it  follows  that  it  likewise  is  not  a  controlling 
rate  basis.  The  rates  on  commodities,  the  movement  of  which 
is  not  controlled  by  active  commercial  competition  or  competi- 
tion between  ocean  carriers,  are  gauged  generally,  although  not 
precisely,  in  accordance  with  distance.  Thus  the  rates  on  ar- 
ticles such  as  grain,  flour  and  provisions  shipped  from  the  United 
States  to  Europe  vary  widely  as  regards  ports  of  destination. 
On  the  other  hand,  the  rates  on  traffic  that  is  more  subject  to 


OCEAN  RATE-MAKING  243 

commercial  or  market  competition  are  frequently  blanketed  over 
many  ports  regardless  of  relative  distances.  Differences  in  the 
volume  of  inbound  or  outbound  traffic,  or  in  the  relative  ability 
of  different  trades  to  bear  a  higher  or  lower  rate,  may  cause 
distance  discrepancies  involving  hundreds  and  even  thousands 
of  miles.  Such  rate  differences  cannot  be  taken  at  their  face 
value,  for  they  may  at  times  be  due  to  differences  in  the  quality 
or  amount  of  service  performed  by  the  various  lines.  They  are 
usually  traceable,  however,  to  the  fundamental  practice  of  mak- 
ing ocean  rates  at  what  the  traffic  will  bear.  Commercial.expedi- 
ency  rather  than  the  cost  of  the  service  has  been  the  ocean 
r^te-makers'  guide."  ^ 

Ocean  Charter  Rate-Making 

As  was  stated  in  Chapter  V  ocean  conferences  in  the  chartered 
service  are  relatively  unimportant.  The  business  organization 
for  making  charter  rates  is  consequently  very  different  from  that 
prevailing  in  the  Hne  service.  In  the  overseas  trade,  charter 
rates  are  not  made  cooperatively  by  a  limited  number  of  con- 
ference committees.  Except  when  under  direct  government  con- 
trol, as  was  the  case  during  the  war,  they  are  usually  the  result 
of  bidding  or  bargaining  between  vessel  owners  or  agents  and 
shippers  or  other  charterers.  The  bargaining  may  be  conducted 
directly  or  more  commonly  through  ship  brokers,  and  it  may 
also  be  facilitated  by  organized  grain,  produce,  or  maritime  ex- 
changes. Charter  rates  resemble  the  prices  of  grain  or  other 
farm  staples  in  that  they  may  change  many  times  in  the  course 
of  a  single  day. 

While  competitive  forces  exert  an  important  influence  over 

ocean  line  rates,  in  making  charter  rates,  competition  dominates 

the  entire  rate  structure.     No  prices  are  more  competitive  than 

charter  rates  in  the  overseas  trade;  they  fluctuate  with  every 

noticeable  change  in  the  relation  of  traffic  to  ocean  tonnage.  Local 

conditions  of  supply  and  demand  cause  rate  variations,  but  the 

governing  competitive   forces   are   world  wide   in   scope.     The 

owners  of  ocean  going  tramps  throughout  the  commercial  world 

are  in  normal  times  of  peace  in  direct  competition  with  each 

other  to  secure  desirable  cargoes,  and  when  bidding  for  cargoes 

*  The  paragraphs  in  quotation  marks  are  taken  from  the  "Principles 
of  Ocean  Transportation"  by  E.  R.  Johnson  and  G.  G.  Huebner. 


244       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

of  grain,  case  oil,  iron  and  steel,  and  other  heavy,  bulky  com- 
modities also  sought  by  the  lines  either  as  berth  or  regular  car- 
goes, this  direct  competition  between  the  tramps  is  supplemented 
by  line  competition. 

Government  Rate-Making 

Under  the  Shipping  Act  of  1916  the  United  States  Shipping 
Board  has  the  power  to  prevent  unreasonable  ocean  line  rate  dis- 
crimination in  the  foreign  trade,  but  it  cannot  prescribe  line  rates 
in  the  absence  of  such  discrimination,  and  ocean  charter  rates 
are  specifically  excluded  from  its  jurisdiction.  Its  rate-making 
powers,  aside  from  the  prevention  of  unreasonable  discrimina- 
tion, are  limited  to  domestic  shipping  in  interstate  commerce. 
After  the  United  States  entered  the  war,  however,  the  President 
was  granted  rate  powers  by  special  act  of  July  18,  1918.  The 
Shipping  Board  had  in  fact  begun  to  prescribe  charter  rates  for 
requisitioned  vessels  even  before  the  enactment  of  this  legisla- 
tion. This  war  emergency  legislation,  however,  specifically  em- 
powers the  President  to  "require  that  vessels  of  the  United 
States  of  any  specified  class  or  description,  or  in  any  specified 
trade  or  trades,  shall  not  be  chartered  unless  the  instrument  in 
which  such  charter  is  embodied,  and  the  rates,  terms,  and  condi- 
tions thereof  are  first  approved  by  him" ;  also  "that  no  citizen  of 
the  United  States  or  other  person  subject  to  the  jurisdiction 
thereof,  shall  charter  any  vessel  of  foreign  nationality  unless  the 
instrument  in  which  such  charter  is  embodied  and  the  rates, 
terms,  and  conditions  thereof  are  first  approved  by  the  President." 
The  same  act  provided  that  "the  President  shall  have  power  to  de- 
termine, prescribe,  and  enforce  reasonable  freight  rates  and  the 
terms  and  conditions  of  affreightment  which  shall  govern  the 
transportation  of  goods  on  vessels  of  the  United  States,  which 
shall  be  filed  with  the  United  States  Shipping  Board  and  open  to 
public  inspection.  It  shall  be  unlawful  to  charge  or  collect  any 
compensation  for  the  transportation  of  goods  on  any  such  vessel, 
or  to  enforce  or  attempt  to  enforce  any  terms  or  conditions  of 
affreightment,  or  to  make  or  receive  any  payment  or  do  any 
act  with  respect  to  such  transportation  not  in  accordance  with 
the  rates,  terms,  and  conditions  so  prescribed.  .  .  ." 

The  ocean  rate-making  powers  of  the  President  were  exer- 


OCEAN  RATE-MAKING  245 

cised  through  the  Shipping  Board.  Beginning  in  September, 
1917,  the  United  States  followed  the  example  set  in  Great  Brit- 
ain's Blue  Book  rates.  The  base  rates  for  chartered  vessels  pre- 
scribed by  the  Shipping  Board  differed  from  the  British  Blue 
Book  charter  rates,  however,  in  that  they  did  not  prevent  the 
vessel  operators  from  making  highly  attractive  profits.  The  pre- 
scribed charter  rates  varied  according  to  whether  the  vessels 
were  operated  under  the  bare  boat  or  time  charters  described  in 
Chapter  XII ;  also  according  to  the  tonnage  of  the  vessels ;  their 
speed,  and  whether  engaged  in  the  cargo  or  passenger  traffic. 
More  attention  was  paid  to  the  cost  of  service  than  was  custo- 
mary in  the  chartered  service  prior  to  government  control,  and 
less  attention  was  paid  to  the  forces  of  supply  and  demand. 
War  conditions  simplified  greatly  the  rate-making  work  of  the 
Shipping  Board,  for  the  Government  had  direct  control  over 
both  vessels  and  cargoes.  Under  such  conditions  it  was  rela- 
tively easy  in  prescribing  charter  rates  to  modify  or  set  aside 
the  usual  close  relationship  between  the  supply  of  and  demand 
for  chartered  vessels. 

The  President  through  the  Shipping  Board  also  exercised  his 
"power  to  determine,  prescribe  and  enforce  reasonable  freight 
rates,"  for  vessels  of  the  United  States  and  foreign  vessels  under 
charter  to  American  citizens  or  the  Government  in  the  foreign 
trade.  The  following  excerpt  taken  from  a  Shipping  Board 
tariff  effective  January  27,  1919,  from  the  North  Atlantic  ports 
of  the  United  States  to  various  named  ports  in  Great  Britain 
illustrate  how  the  Government  prescribed  detailed  freight  rate 
tariffs : 

TABLE  II 

UNITED  STATES  SHIPPING  BOARD 

TARIFF  NO.  8  Rates  of  Freight 

From  United  States  North  Atlantic  Ports 
to 
Liverpool,  London,  Manchester,  Hull,  Avonmouth,  Bristol,  Cardiff,  Glasgow, 

Leith,  and  Belfast 

COMMODITIES  NOT  ENUMERATED  TAKE  RATE  OF  $1.00  PER  100  LBS.  OR  50  CENTS 
PER  CUBIC  FOOT,  SHIP's  OPTION,  EXCEPT  DANGEROUS  CARGO  ON  WHICH 
SPECIAL  RATES  WILL  BE  QUOTED  ON  APPLICATION. 

RATES 

Acetate  of  Lead |i . oo  per  loo  lbs. 

Acetate  of  Lime i . oo  per  loo  lbs. 

Acetone i  •  50  per  100  lbs. 


246      OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

RATES — Continued 

Acetic  Acid i .  50  per  100  lbs. 

Agricultural  Implements i  .00  per  100  lbs.  or  50c.  cu.  ft. 

Agricultural  Tractors 1 .00  per  100  lbs.  or  50c.  cu.  £t. 

Ammonia i  .25  per  100  lbs. 

Apples,  in  barrels 3.00  net         bbl. 

Apples,  in  boxes 85  net         box 

Asbestos 1 .00  per  100  lbs. 

Asbestos  Powder l  .00  per  100  lbs. 

Asphalt 1 .00  per  100  lbs. 

Auto  Trucks 1 .00  per  100  lbs.  or  50c.  Cu.  ft. 

Ball  Bearings 1 .  00  per  100  lbs. 

Bark  and  Roots,  in  bales  and  bags,  except 

Cascara 1 .25  per  100  lbs. 

Bark,  Cascara — See  Cascara  Bark 

Bars,  Black 20.00  per  ton  weight 

Bary tes 20 .  00  per  ton  weight 

Beef  Extract i .  00  per  100  lbs. 

Belting,  leather  and  rubber 50  per  cu.  ft. 

Binder  Twine,  in  bundles 1 .00  per  100  lbs. 

Bitumin 1 .  00  per  100  lbs. 

Blocks,  Mangle  and  Maple  Roller 1 .00  per  loo  lbs. 

Blue  Prints  and  Drawings 50  per  cu.  ft. 

Boat  Oars 1 .00  per  100  lbs. 

Boiler  Tubes 20 .  00  per  ton  weight 

Bolts  and  Nuts 20 .00  per  ton  weight 

Books 50  per  cu.  ft. 

Boracic  Acid 1 .  00  per  100  lbs. 

Borate  of  Lime 1 .00  per  100  lbs. 

Spokes,  oak 1 .  00  per  100  lbs. 

Spool  Wood 1 .  00  per  100  lbs. 

Staples 20. 00  per  ton  weight 

Starch,  in  bags i .  00  per  100  lbs. 

Steel  Billets 20 .  00  per  ton  weight 

Steel,  cold  roller — in  boxes 20.00  per  ton  weight 

Steel  Hoops,  in  coils 20 .  00  per  ton  weight 

Steel  Rails,  light  not  over  30  ft.  in  length. .  20.00  per  ton  weight 

Stems 1 .00  per  100  lbs. 

Straw-board 1 .  00  per  100  lbs. 

Syrup 1 .  00  per  100  lbs. 

Thorium 75  per  cu.  ft.  or  I  %  ad.  val. 

Tobacco  (Kings  Warehouse  delivery) 2 . 00  per  100  lbs.net  (noprimage) 

Tomato  Ketchup 1 .  00  per  100  lbs. 

Tula  Fiber,  in  bales 1 .  25  per  100  lbs. 

Turpentine,  in  bbls 1 .  25  per  100  lbs. 

Typewriters 5°  per  cu.  ft. 

Vanadium 1 .00  per  100  lbs.  or  l%  ad.  val. 

Varnish,  in  bbls 1 .  50  per  100  lbs. 

Vitreous  Clay 1 .  00  per  100  lbs. 

Watches 75  per  cu.  ft.  or  1%  ad.  val. 

Wax I  •  00  per  100  lbs. 

White  Lead 1 .00  per  100  lbs. 

Wire,  in  coils,  or  bbls 20 .  00  per  ton  weight 

Wire  Netting i  .00  per  100  lbs. 

Wood  Alcohol 1 .  50  per  100  lbs. 

Wood  Pulleys 50  per  cu.  ft. 

Woodpulp 1 .  00  per  100  lbs. 

Wool  Noils,  in  compressed  bales,  occupying 

100  sq.  ft.  or  less 1 .  50  per  100  lbs. 

In  uncompressed  bales 2 .00  per  100  lbs. 


OCEAN  RATE-MAKING  247 

KATES —  Continued 

Wrenches 1 .00  per  100  lbs. 

Zinc 1 .  00  per  100  lbs. 

Zinc  Ashes 1 .00  per  100  lbs. 

Zinc  Dross 1 .00  per  100  lbs. 

Zinc  Oxide i  .00  per  100  lbs. 

Issued  by 

RATE  DEPARTMENT 

Division  of  Operations. 
Approved : 

J.  H.  ROSSETER, 

Director  of  Operations. 

Five  supplements  to  this  United  Kingdom  tariff  have  been 
issued  by  the  Shipping  Board.  The  Board  has  similarly  pre- 
scribed rates  to  other  parts  of  the  world.  Some  of  the  principal 
tariffs  are  as  follows :  No.  12B,  applying  from  the  Gulf  ports  to 
the  United  Kingdom  and  various  continental  European  countries ; 
No.  IIB,  from  the  South  Atlantic  ports  to  these  destinations; 
No.  9F,  from  the  North  Atlantic  ports  to  specified  ports  in  con- 
tinental Europe;  No.  IOC,  from  the  Atlantic  and  Gulf  ports  to 
Europe  on  cotton;  No.  21  A,  from  the  North  Atlantic  ports  to 
the  North  Africa-Levant-Red  Sea  district;  No.  22A,  from  the 
North  Atlantic  ports  and  Charleston,  S.  C,  to  Europe  on  coal 
and  coke;  No.  18C,  from  the  North  Atlantic  ports  to  Greek- 
Adriatic  ports;  No.  17D,  from  the  North  Atlantic  ports  to  the 
Far  East;  and  No.  5A,  from  the  Atlantic  and  Gulf  ports  to  South 
America. 

The  act  of  July  18,  1918,  under  which  these  tariffs  were  issued, 
is,  however,  avowedly  a  war  measure.  The  rate  powers  granted 
to  the  President,  as  the  Act  now  stands,  expire  when  the  treaty 
of  peace  is  proclaimed  between  the  United  States  and  Germany, 
unless  the  President  by  proclamation  extends  the  provisions  of 
the  Act  for  an  additional  period,  not  exceeding  nine  months.  It 
was  recently  announced  by  the  Shipping  Board  that  its  control 
over  ocean  freight  rates  on  all  privately  owned  and  controlled 
vessels  will  be  relinquished  in  the  near  future,  but  that  it  will 
continue  to  publish  tariffs  covering  cargoes  carried  in  vessels 
owned  or  controlled  by  the  Board. 


CHAPTER  XVI 
OCEAN  RATE-MAKING  (Continued) 

While  the  Freight  Traffic  Department  of  a  steamship  line  is 
most  directly  concerned  with  the  port-to-port  freight  rates  which 
the  various  lines  individually  or  in  conference  with  others  put 
into  effect  from  time  to  time,  it  is  also  concerned  with  the  com- 
bined inland  and  ocean  freight  rates  on  shipments  moving  be- 
tween interior  points  in  the  United  States  and  foreign  countries. 
The  inland  rates  to  and  from  interior  points  exert  a  distinct  in- 
fluence over  the  flow  of  ocean  traffic,  the  development  of  which 
is  one  of  the  functions  of  the  traffic  organization  of  an  ocean 
carrier.  The  freight  agents,  solicitors,  and  brokers  of  an  ocean 
steamship  line,  when  soliciting  traffic,  need  to  be  familiar  with 
the  railroad' rates  from  interior  points  in  the  United  States  to 
the  ports  of  export,  and  with  the  rates  on  imported  cargoes  des- 
tined to  inland  destinations.  Ocean  freight  forwarders  when 
quoting  through  rates  to  foreign  destinations  are  as  much  con- 
cerned with  inland  as  with  ocean  rates,  for  the  through  rates 
quoted  by  them  are  based  upon  both.  When  steamship  lines  or 
railroads  undertake  the  forwarding  of  cargoes  for  interior  ship- 
pers, inland  as  well  as  ocean  rates  are  likewise  a  consideration, 
and  the  importance  of  both  rates  to  interior  importers  and  ex- 
porters is  obvious. 

Inland  Rates  to  and  From  Shipside 

Most  export  shipments  of  carload  freight  from  interior  points 
are  made  on  railroad  rates  which  apply  to  shipside  at  the  port 
of  export ;  and  imports  are  similarly  carried  in  carload  lots  from 
the  ports  to  interior  destinations  on  rates  applicable  from  ship- 
side  at  the  ports  of  entry.  The  rates  on  less-than-carload  lots 
are  more  frequently  applicable  to  or  from  the  port,  additional 
costs  being  incurred  in  transferring  them  between  the  railroad 
car  and  vessel. 

848 


OCEAN  RATE-MAKING  249 

Care  needs  to  be  taken  in  quoting  the  inland  rates  because 
there  are  numerous  routes  with  different  rates,  and  one  and  the 
same  route  may  have  domestic  as  well  as  special  export  or  im- 
port rates.  Between  the  Central  West  and  the  North  Atlantic 
ports,  for  example,  there  are  standard  and  differential  all-rail 
routes ;  and  standard  and  differential  lake-and-rail  routes.  There 
is  also  a  Lake-and-Erie  Canal  route;  a  Lake-and-St.  Lawrence- 
Rail  route;  a  Lake-and-St.  Lawrence  River  route;  ocean-rail 
routes  tlirough  Philadelphia,  Baltimore,  or  Virginia  ports ;  ocean- 
rail  routes  via  South  Atlantic  and  Gulf  ports;  and  lake  transit 
routes  for  grain.  The  number  of  available  routes  varies  at  the 
different  North  Atlantic  ports  and  interior  points.  A  knowledge 
of  the  so-called  "port  differentials"  should  moreover  be  acquired, 
because  rates  to  and  from  the  various  North  Atlantic  ports  are 
fixed  so  that  the  rates  of  one  port  bear  a  definite  relationship 
to  those  of  the  other  North  Atlantic  ports.  Steamship  lines  and 
other  shipping  concerns  located  at  the  ports  are  vitally  interested 
in  any  change  of  the  existing  port  differentials  that  may  be  pro- 
posed, because  a  change  in  their  relative  inland  rates  would  in- 
fluence the  flow  of  traffic  to  one  port  as  compared  to  another. 

If  no  special  export  and  import  rates  are  applicable  to  a  par- 
ticular export  or  import  shipment  the  domestic  tariffs  to  and 
from  the  ports  govern.  As  the  domestic  rates  vary  somewhat 
via  different  inland  routes,  the  routing  of  the  cargoes  to  and  from 
the  ports  is  important  not  only  with  respect  to  promptness  of 
delivery,  likelihood  of  damage  to  freight,  and  available  special 
services  and  privileges,  but  also  because  careful  routing  may 
reduce  the  exporter's  or  importer's  freight  bill. 

Foreign  trade  shipments  are  in  many  instances  entitled  to 
export  and  import  rates  which  are  substantially  lower  than  the 
domestic  rates. 

Before  the  war,  export  and  import  rate  tariffs  were  in  effect 
via  the  ports  of  each  of  the  three  seaboards,  although  those  ap- 
plicable at  the  Gulf  and  Pacific  coast  ports  were  more  compre- 
hensive than  those  in  effect  at  the  North  Atlantic  ports.  When 
railroad  freight  congestion,  particularly  at  the  North  Atlantic 
ports,  became  acute,  efforts  were  made  to  restrict  and  control 
foreign  trade  rather  than  to  increase  its  volume,  and  the  Director 
General  of  Railroads  in  his  rate  order  of  May  25,  1918,  ordered 
the  cancellation  of  the  import  and  export  rates  then  in  effect. 


250      OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

Later,  however,  a  number  of  export  and  import  tariffs  were 
again  authorized.  A  transcontinental  tariff,  effective  May  29, 
1919,  for  example,  names  import  commodity  rates  from  ship- 
side  at  Pacific  Coast  ports  on  shipments  originating  at  Asiatic 
points  and  points  in  the  Philippine  Islands,  Australia,  New  Zea- 
land, and  the  Oceanic  islands,  Central  and  South  America, 
Mexico,  and  the  Hawaiian  Islands  (when  specifically  shown  in 
individual  items)  to  a  large  range  of  destinations  in  the  United 
States  and  the  eastern  provinces  of  Canada.  The  rates  given 
in  this  tariff  for  the  North  Pacific  ports  apply  from  shipside,  ex- 
cept when  the  charges  for  storage,  wharfage,  loading,  unload- 
ing, and  handling  exceed  one  dollar  per  net  ton.  In  such  cases 
the  excess  over  one  dollar  per  net  ton  is  collected  in  addition  to 
the  stated  import  rates.  At  California  ports  the  rates  given  in 
the  tariff  apply  from  shipside  and  include  charges  for  terminal 
services,  regardless  of  their  amount.  The  tariff  also  provides 
that  in  case  of  import  shipments  moving  from  California  ports 
to  the  east  through  the  Gulf  ports  via  rail-and-water  routes,  other 
than  the  Atchison,  Topeka  and  Santa  Fe  lines,  marine  insurance 
shall  be  included  in  the  import  rates. 

The  Railroad  Administration  has  also  put  into  effect  export 
rates  from  interior  ports  through  the  Pacific  and  Gulf  ports 
with  a  view  to  enabling  these  ports  to  compete  with  the  ports  of 
the  North  Atlantic.  The  Gulf  and  South  Atlantic  ports  are,  how- 
ever, pressing  demands  for  further  export  and  import  rate  con- 
versions. The  increasing  interest  of  all  sections  of  the  United 
States  in  the  foreign  trade  is  likely  to  result  in  numerous  changes 
in  existing  export  and  import  rates  and  perhaps  in  the  adoption 
of  a  larger  number  of  such  rates  than  were  in  effect  before  the 
war.  The  forces  which  tend  to  give  lower  railroad  rates  to 
exports  and  imports  than  to  domestic  shipments  are  mainly  the 
commercial  competition  which  the  United  States  meets  in  the 
foreign  trade  and  the  rivalry  of  the  ports,  each  port  desiring  to 
increase  its  share  of  ocean  shipping.  Should  the  railroads  be 
returned  to  their  owners  for  operation,  the  more  acute  compe- 
tition between  them  in  the  foreign  than  in  the  domestic  trade  may 
also  become  a  factor  as  it  was  in  the  past.  In  the  import  trade 
there  is  the  further  tendency  to  counteract  the  effect  of  pro- 
tective import  duties. 


OCEAN  RATE-MAKING  251 

Through  Rail-Ocean  Rates 

In  the  domestic  trade  much  freight  is  shipped  on  through  rail- 
and-ocean  rates,  effective  on  railroad  and  coastwise  steamship 
Hues  handHng  joint  traffic.  The  Director  General  of  Railroads 
has  established  such  through  rates  between  many  points,  and  as 
is  more  fully  stated  in  Chapter  XVII  the  Interstate  Commerce 
Commission  has  jurisdiction  over  interstate  traffic  moving  partly 
by  rail  and  partly  by  water. 

In  the  foreign  trade,  however,  the  common  practice  is  to  quote 
combination  rates,  consisting  of  separate  inland  and  ocean 
rates.  Through  rail-ocean  rates  are  exceptional  in  the  overseas 
trade.  The  most  recent  instances  of  such  rates  are  the  through 
rates  on  freight  shipped  by  way  of  certain  steamship  lines  to 
Tampico,  Frontera  and  Vera  Cruz,  Mexico,  through  New  Or- 
leans, Port  Arthur,  and  Texas  City.  Until  July,  1916,  the  trans- 
continental railroads  also  quoted  through  rates  from  interior 
points  through  Pacific  coast  ports  to  certain  Asiatic  and  Austra- 
lasian points,  the  rail  proportions,  however,  being  fixed  amounts 
and  stated  separately  from  the  ocean  proportion  of  the  through 
rates.  Those  contained  in  the  tariffs  of  the  Transcontinental 
Freight  Bureau  were  "for  information  only";  the  ocean  pro- 
portions were  not  guaranteed. 

Through  rail-ocean  rates  in  the  foreign  trade  were  more 
common  in  the  past.  Until  1890  the  railroads  frequently  took 
a  percentage  of  fluctuating  through  rates.  The  fluctuations  in 
ocean  freights  were  so  abrupt,  however,  and  the  through  rates 
to  foreign  destinations  were  at  times  so  low  as  compared  with 
domestic  rates  that  many  through  tariffs  were  withdrawn.  Later, 
the  Hepburn  Amendment  of  1906  to  the  Interstate  Commerce 
Act  made  it  unlawful  for  railroads  to  accept  a  percentage  of 
fluctuating  through  rates,  for  it  requires  the  publication  and 
filing  of  interstate  railroad  charges  and  a  notice  of  thirty  days 
before  changes  become  effective. 

When  an  exporter  desires  a  through  rate  to  a  foreign  destina- 
tion he  ordinarily  obtains  it  from  an  ocean  freight  forwarder. 
The  separate  rail  and  ocean  freight  rates  are  in  this  case  paid 
by  the  forwarder,  while  the  shipper  or  his  consignee  pays  a 
through  charge  to  the  forwarder.* 
*See  Chapter  VI. 


252       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

The  rail  and  ocean  freight  rates  mentioned  above  do  not  con- 
stitute the  entire  freight  bill  of  the  exporter  or  importer.  It 
also  includes  such  port  or  terminal  charges  as  are  assessed 
against  shippers.  Charges  of  this  kind  are  fully  discussed  in 
the  manual  on  Wharf  Management, 

Ocean  Passenger  Fares  ^ 

"The  principles  governing  the  making  of  ocean  passenger 
fares  are  generally  the  same  as  those  stated  in  connection  with 
ocean  freight  rates,  subject  to  certain  inherent  differences  be- 
tween the  nature  of  passenger  and  freight  traffic.  Over  a  given 
route  they  are  fixed  at  varying  amounts  per  passenger  subject  to 
a  threefold  variation:  (1)  They  are  different  via  different  hues 
or  steamers  depending  upon  their  relative  speed,  accommoda- 
tions or  the  superior  character  of  their  services.  On  the  North 
Atlantic  route,  where  the  steerage  traffic  is  generally  pooled  by 
the  passenger  lines,  the  steerage  fares  via  given  lines  or  steam- 
ers may,  moreover,  be  advanced  relative  to  those  via  others  with 
a  view  to  directing  the  volume  of  steerage  traffic  so  as  to  main- 
tain the  percentages  allotted  to  each  line.  (2)  They  vary  ac- 
cording to  the  class  of  passage  selected  by  the  traveler,  i.e.,  ac- 
cording to  the  passenger  service  classification  maintained  by  the 
carriers.  (3)  On  a  given  steamer  the  cabin  fares  within  a  class 
vary  for  different  cabins  or  staterooms  according  to  their  loca- 
tion, reservation  for  individual  passengers  or  other  special  con- 
siderations. This  gradation  of  fares  is  due  partly  to  considera- 
tions of  what  the  traffic  will  bear  and  the  relative  value  of  the 
service  rendered,  and  partly  to  cost  differences. 

"Though  ocean  fares  are  usually  fixed  primarily  at  what  the 
traffic  will  bear,  the  competitive  forces  affecting  them  differ 
somewhat  from  those  influencing  line  freight  rates.  The  force 
of  international  commercial  competition  and  port  rivalry,  al- 
though by  no  means  entirely  absent,  is  not  so  prevalent  as  in 
freight  transportation.  Ocean  fares,  moreover,  are  not  subject 
to  tramp  competition.  Direct  competition  is  limited  to  the  lines 
themselves,  and  is  subject  to  control  by  conferences. 

"Prior  to  the  war  in  Europe  there  were  at  least  twelve  North 

*This  section  is  reproduced  from  Johnson  and  Huebner,  "Principles 
of  Ocean  Transportation,"  pp.  335-337. 


OCEAN  RATE-MAKING  253 

Atlantic  passenger  agreements  {see  Chart  VII  in  Chapter  V), 
through  which  the  heavy  steerage  traffic  moving  between  the 
United  States  and  Europe  was  pooled  and  its  fares  established 
in  conference,  and  through  which  minimum  first  and  second- 
class  cabin  fares  were  agreed  upon.  The  N.  D.  L.  V.  passenger 
agreement  referred  to  in  Chapter  V,  for  example,  provided 
that  2 

No  line  has  the  right  to  alter  its  steerage  and  second-cabin  rates  without 
previously  informing  the  Secretary.  The  Board  of  Secretaries  cannot 
compel  any  line  to  fix  its  gross  rates  for  adult  steerage  passengers  at 
less  than  100  marks,  unless  with  the  consent  of  the  Board  of  Presidents. 
The  lines  agree  to  commence  with  definitely  fixed  steerage  rates,  all  of 
which  are  stipulated  in  the  contract.  The  lowest  cabin  rate  must  be 
at  least  SO  per  cent,  higher  than  its  steerage  rate  and  30  per  cent,  higher 
than  the  highest  steerage  rate  of  any  of  the  other  lines. 

"Few  passenger  conferences  or  agreements  exist  outside  of  the 
United  States-European  traffic,  but  the  competition  in  the  pas- 
senger business  between  the  lines  operating  elsewhere  is  in- 
directly controlled  through  their  many  freight  agreements.  Ex- 
cept on  the  North  Atlantic  route  the  long-distance  ocean  pas- 
senger traffic  is  secondary  to  the  freight  traffic  of  the  passenger- 
carrying  lines.  Any  agreement  concerning  division  of  territory 
or  ports,  the  number  of  their  sailings,  vessel  tonnage,  or  number 
of  steamers  influences  passenger  as  well  as  freight  competition. 

"Ocean  fares  have  fluctuated  less,  and  have,  on  the  whole,  been 
maintained  at  a  higher  level  than  freights,  both  because  of  the 
difference  in  competitive  conditions  mentioned  above  and  be- 
cause of  the  higher  capital,  operating  and  maintenance  costs  of 
the  passenger  service.  While  the  economies  resulting  from  in- 
creased size  of  vessels  and  efficiency  of  marine  engineering  were 
accompanied  by  lower  freight  rates,  similar  economies  in  pas- 
senger steamers  were  largely  offset  by  the  additional  costs  oc- 
casioned by  increased  speed,  comfort,  luxury  and  betterments  of 
the  passenger  service.  There  are  times,  of  course,  when  ocean 
freights  temporarily  soar  to  levels  which  passenger  fares  can- 
not approach.  The  war  in  Europe,  for  example,  although  stimu- 
lating an  acute  demand  for  freight  tonnage,  caused  a  pronounced 
shrinkage  in  the  volume  of  the  North  Atlantic  passenger  traffic." 

*  House  Committee  on  the  Merchant  Marine  and  Fisheries,  Vol.  IV, 
"Proceedings  in   the   Investigation   of    Shipping   Combinations,"   p.  28. 


CHAPTER  XVII 

GOVERNMENT  REGULATION   OF  OCEAN  RATES  AND 
SERVICES 

Throughout  this  manual  reference  has  been  repeatedly  made 
to  the  customs  laws  and  regulations  of  the  United  States  and  to 
the  consular  regulations  of  foreign  countries  because  the  legal 
requirements  regarding  the  entry  and  clearance  of  vessels  and 
cargoes  are  of  direct  concern  to  the  traffic  departments  of 
steamship  lines,  to  the  operators  of  tramp  vessels,  and  to  the 
various  agencies  that  have  been  described.  The  United  States 
Government  has  also  for  many  years  applied  its  so-called  naviga- 
tion lav^s,  which  comprise  a  volume  of  over  550  pages,  the  most 
comprehensive  statute  being  the  Seamen's  Act  of  March  4,  1915. 
They  include  the  vessel  registry  acts,  the  measurement  laws,  the 
tonnage  tax  laws,  and  the  statutes  regulating  the  seaworthiness, 
safety  and  inspection  of  vessels.  They  include  the  many  pro- 
visions applicable  to  the  nationality,  licensing,  qualifications, 
powers  and  number  of  officers  on  American  vessels;  and  those 
governing  the  minimum  number  of  the  crew,  the  shipping  of 
certified  lifeboat  men  and  able  seamen,  the  ability  of  75  per  cent, 
of  the  crew  to  understand  orders  given  by  a  vessel's  officers,  the 
payment  of  the  crew's  wages,  the  agreements  under  which  the 
crew  members  are  shipped,  their  provisions  and  water  allow- 
ance, the  size  and  condition  of  their  quarters,  the  number  of 
watches  when  at  sea  and  the  number  of  hours  of  work  when 
in  port,  the  treatment  of  the  crew  by  officers  and  the  penalty  for 
desertion.  These  and  other  navigation  laws  are  variously  ad- 
ministered by  the  U.  S.  Commissioner  of  Navigation,  the  Cus- 
toms Service,  the  Shipping  Commissioners,  Corps  of  Engineers, 
Bureau  of  Public  Health,  Consular  Service,  Department  of  Agri- 
culture, Post  Office  Department,  Navy  Department,  Steamboat 
Inspection  Service,  War  Trade  Board  Section  of  the  State  De- 
partment, and  other  federal  executive  departments,  bureaus  and 
boards.     The  principal  maritime  laws  that  concern  ocean  ship- 

254 


GOVERNMENT  REGULATION  OF  OCEAN  RATES  255 

pers,  ship  owners  and  operators,  ship  officers  and  seamen  are 
discussed  in  a  separate  manual  of  this  series  on  Lazvs  of  the 
Sea  by  Mr.  George  L,  Canfield.  Some  of  them  concern  steam- 
ship traffic  management,  but  many  are  primarily  apphcable  to 
the  work  of  other  departments  in  a  steamship  company's  or- 
ganization.^ 

The  administration  of  ports  by  local  authorities  is  also  a  factor 
in  traffic  management,  although  one  that  is  more  directly  con- 
nected with  steamship  operation.  The  Federal  Government  and 
the  local,  state  and  municipal  authorities  exercise  dual  authority 
in  the  regulation  of  piers,  wharves,  elevators  and  other  facilities, 
port  charges  and  dues,  dockage  and  wharfage  practices,  health 
and  quarantine  control,  and  police  supervision.  Both  exercise 
control  over  pilots  and  pilotage  although  state  regulation  is  in 
this  case  by  permission  of  Congress.^ 

The  purpose  of  this  chapter  is  to  give  an  account  of  the  extent 
to  which  the  Government  regulates  steamship  services  and  ocean 
rates,  for  such  regulation  is  particularly  applicable  to  traffic 
management. 

Passenger  and  Immigration  Laws 

Although  the  ocean  freight  and  cabin  passenger  services  were 
for  many  years  relatively  free  from  government  control,  except 
such  as  resulted  indirectly  from  the  customs,  consular,  and  gen- 
eral navigation  laws  referred  to  above,  steerage  passenger  traffic 
has  been  subjected  to  special  regulation  since  1882.  The  pas- 
senger act  enacted  in  that  year,  as  amended  to  date,  limits  the 
number  of  steerage  passengers  that  a  vessel  may  carry;  it  re- 
quires reasonable  steerage  accommodations  and  prescribes  the 
minimum  space  per  passenger  on  steerage  decks ;  it  regulates  the 
food,  light  and  air,  discipline  and  cleanliness,  medical  attention 
and  the  privacy  of  steerage  passengers.  The  carriage  of  cargo 
and  stores  on  steerage  decks,  and  of  explosives  and  livestock  on 
vessels  carrying  steerage  passengers  is  prohibited.  The  keeping 
of  a  passenger  list  is  required,  and  fees  are  prescribed  in  case 
of  the  death  of  steerage  passengers.     Inspection  of  vessels  by 

^  See  also  E.  R.  Johnson  and  G.  G.  Huebner,  "Principles  of  Ocean 
Transportation,"  Chapter  XXIV  (General  Navigation  Laws  of  the  U.  S.). 

"  Ibid.,  Chapter  X,  Ocean  Ports  and  Terminals,  pp.  130-135,  and  Chapter 
XXVI,   Aid   and   Regulation    by    States   and    Municipalities. 


256       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

the  customs  authorities  is  provided  to  insure  the  enforcement 
of  the  act. 

The  steerage  service  is  also  affected  directly  by  the  United 
Stales  immigration  laws.  Immigrants  brought  to  the  United 
States  are  subjected  to  examination  by  the  Immigration  authori- 
ties, and  if  found  to  be  afflicted  with  tuberculosis  or  w^ith  a 
"loathsome  or  dangerous  contagious  disease"  are  excluded.  The 
Immigration  Act  of  1917  also  excludes  aliens  of  the  following 
classes : — idiots,  imbeciles,  feeble-minded,  epileptic  or  insane 
persons;  persons  who  have  had  previous  attacks  of  insanity; 
persons  of  constitutional  psychopathic  inferiority ;  vagrants ; 
persons  with  chronic  alcoholism ;  professional  beggars ;  paupers, 
and  persons  with  mental  or  physical  defects  that  may  affect  their 
ahihty  to  earn  a  living;  persons  likely  to  become  a  public  charge; 
those  who  were  convicted  of  or  admit  having  committed  a  felony 
or  other  crime  or  misdemeanor  involving  moral  turpitude;  po- 
lygamists  and  those  believing  in  or  advocating  polygamy ;  an- 
archists and  members  of  anarchistic  organizations ;  prostitutes  and 
white  slavers;  contract  laborers,  with  certain  exceptions,  and 
persons  coming  because  of  advertisements  for  laborers  printed 
or  distributed  abroad;  persons  whose  passage  is  paid  by  a  cor- 
poration, association,  society,  municipality  or  foreign  govern- 
ment; stowaways,  unless  otherwise  admissible  and  allowed  to 
enter  in  the  discretion  of  the  Secretary  of  Labor;  and  children 
under  sixteen  years  of  age,  unless  accompanied  by  or  coming  to 
one  or  both  parents  or  admitted  in  the  discretion  of  the  Secretary 
of  Labor  as  persons  not  likely  to  become  a  public  charge.  This 
law  also  excludes,  with  certain  expressed  exceptions,  aliens  over 
sixteen  years  of  age  who  cannot  read  the  English  language  or 
some  other  language  or  dialect.  The  immigration  of  natives 
from  Oriental  countries  is  prohibited  subject  to  exceptions  con- 
tained in  the  law  or  in  existing  treaties. 

The  solicitation  of  alien  immigrants  by  vessel  owners  or  op- 
erators or  by  the  masters,  officers  or  agents  of  vessels  is  specifi- 
cally prohibited  and  penalized.  If  any  excluded  aliens  are 
brought  to  the  United  States  by  a  steamship  company  and  their 
disease,  inability  or  other  grounds  for  exclusion  could  have  been 
detected  at  the  time  of  embarkation  by  means  of  a  competent 
medical  examination  or  by  the  exercise  of  reasonable  precau- 
tion, the  steamshio  company  may  be  required  to  pay  specified 


GOVERNMENT  REGULATION  OF  OCEAN  RATES  257 

amounts  to  the  customs  collector  and  "in  addition  a  sum  equal 
to  that  paid  by  such  alien  for  his  transportation  from  the  initial 
point  of  departure,  indicated  in  his  ticket,  to  the  port  of  arrival 
for  each  and  every  violation  of  the  provisions  of  this  section, 
such  latter  sum  to  be  delivered  by  the  collector  of  customs  to 
the  alien  on  whose  account  assessed."  The  act  of  1917,  more- 
over, provides  "that  all  aliens  brought  to  this  country  in  violation 
of  law  shall  be  immediately  sent  back,  in  accommodations  of  the 
same  class  in  which  they  arrived,  to  the  country  whence  they 
respectively  came,  on  the  vessels  bringing  them,  unless  in  the 
opinion  of  the  Secretary  of  Labor  immediate  deportation  is  not 
practicable  or  proper.  The  cost  of  their  maintenance  while  on 
land,  as  well  as  the  expense  of  the  return  of  such  aliens,  shall 
be  borne  by  the  owner  or  owners  of  the  vessels  on  which  they 
respectively  came."  Steamship  companies  are  also  required, 
with  certain  exceptions,  to  pay  a  head  tax  of  eight  dollars  for 
every  alien  immigrant  who  is  admitted  by  the  immigration 
authorities. 

The  Interstate  Commerce  Act 

The  Interstate  Commerce  Act  of  1887  as  amended  to  date 
applies  directly  to  the  traffic  of  steamship  companies  in  interstate 
commerce  and  in  the  trade  with  adjacent  foreign  countries  when 
handled  partly  by  rail  and  partly  by  water  under  "a  common 
control,  management  or  arrangement  for  a  continuous  carriage 
or  shipment,"  and  as  amended  by  the  Panama  Canal  Act  of 
1912  it  applies  directly  to  all  interstate  traffic  handled  partly  by 
rail  and  partly  by  water.  In  the  coastwise  and  Great  Lakes 
trade  the  Interstate  Commerce  Commission  may  establish 
through  rail-water  routes,  maximum  joint  rates,  and  maximum 
proportional  rates  applicable  to  rail-water  traffic;  it  may  order 
the  carriers  to  establish  physical  connections  between  rail  and 
water  carriers;  it  may  order  the  issue  of  through  bills  of  lading; 
it  may  fix  rate  divisions  between  the  railroads  and  steamship 
companies;  and  it  may  regulate  ferries  operated  and  terminal 
facilities  used  in  connection  with  interstate  rail-water  traffic. 

The  interstate  commerce  act  does  not,  however,  apply  to  the 
port-to-port  charges  or  services  of  steamship  companies  engaged 
in  interstate  commerce  or  in  the  trade  with  adjacent  foreign 


258       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

countries.  The  only  direct  powers  of  the  Commission  in  the 
port-to-port  business  are  embodied  in  Section  20  of  the  inter- 
state commerce  act,  which  under  a  ruling  of  the  Supreme  Court 
empowers  the  Commission  to  obtain  statistical  reports  and  pre- 
scribe a  system  of  accounts  covering  the  port-to-port  as  well  as 
the  rail-water  traffic  of  domestic  steamship  lines  who  handle 
traffic  in  connection  with  the  railroads;  and  in  Section  11  of  the 
Panama  Canal  Act  which  provides  that  steamship  lines  owned 
or  controlled  by  railroads  with  whom  they  are  or  might  be  in 
competition  may  under  certain  conditions  continue  to  be  so 
owned  or  controlled  with  the  consent  of  the  Interstate  Com- 
merce Commission,  but  that  their  rates,  schedules  and  practices 
must  be  filed  with  the  Commission  and  become  subject  to  the 
Interstate  Commerce  Act  to  the  same  extent  as  those  of  the  con- 
trolling railroads. 

The  charges  and  services  of  steamship  companies  engaged  in 
the  overseas  foreign  trade  are  not  within  the  jurisdiction  of  the 
Commission  as  regards  either  their  port-to-port  business  or  the 
traffic  which  they  handle  in  connection  with  the  railroads.  The 
Commission  can  regulate  ocean  carriers  in  the  overseas  foreign 
trade  only  indirectly  by  regulating  the  railroads  with  whom  they 
interchange  traffic,  and  the  ocean  terminals  used  by  the  railroads 
in  the  foreign  trade.  The  Commission  can  regulate  the  export 
and  import  rates  of  the  railroads,  their  rules  and  regulations, 
their  demurrage  and  other  charges  and  their  practices  exactly 
as  in  case  of  the  domestic  traffic  of  the  railroads.  The  Panama 
Canal  Act  of  1912  also  provides  that  "if  any  rail  carrier  subject 
to  the  act  to  regulate  commerce  enters  into  arrangements  with 
any  water  carrier  operating  from  a  port  in  the  United  States  to 
a  foreign  countrj^  through  the  Panama  Canal  or  otherwise  for 
the  handling  of  through  business  between  interior  points  of  the 
United  States  and  such  foreign  country,  the  Interstate  Com- 
merce Commission  may  require  such  railway  to  enter  into  similar 
arrangements  with  any  or  all  other  lines  of  steamships  operating 
from  said  port  to  the  same  foreign  country."  The  Commission 
has  power  to  regulate  the  export  and  import  charges  and  ser- 
vices of  the  railroads,  but  its  jurisdiction  does  not  extend  to 
the  charges  and  services  of  ocean  carriers  in  the  overseas  trade. 

The  Interstate  Commerce  Act  as  amended  in  Section  11  of  the 
Panama  Canal  Act  contains  important  provisions  regarding  the 


GOVERNMENT  REGULATION  OF  OCEAN  RATES  259 

ownership  or  control  of  steamship  companies  by  railroads.  The 
section  provides  first,  that  common  carriers  by  water  operating 
through  the  Panama  Canal  may  not  be  owned  or  controlled  by 
railroads  with  which  they  are  or  might  be  in  competition ;  and 
second,  that  common  carriers  by  water  not  operating  through 
the  Panama  Canal  may  not  be  owned  or  controlled  by  railroads 
with  which  they  are  or  might  be  in  competition  imless  the  In- 
terstate Commerce  Commission  is  of  the  opinion  that  such  car- 
rier by  water  is  "operated  in  the  interest  of  the  public  and  is  of 
advantage  to  the  convenience  and  commerce  of  the  people"  and 
that  the  continuation  of  such  railroad  ownership  or  control  "will 
neither  exclude,  prevent,  nor  reduce  competition  on  the  route  by 
water  under  consideration." 

Section  11  of  the  Panama  Canal  Act  also  prohibits  vessels  in 
the  coastwise  or  foreign  trade  from  entering  or  passing  through 
the  Panama  Canal  if  they  are  owned,  chartered,  operated  or 
controlled  by  concerns  doing  business  in  violation  of  the  federal 
anti-trust  laws. 

The  United  States  Shipping  Act  of  1916 

The  Shipping  Act  of  September  7,  1916,  was  enacted  in  part  to 
aid  the  American  merchant  marine  and  in  part  to  regulate  the 
port-to-port  charges  and  services  of  ocean  steamship  lines  anH 
the  relations  between  them.  It  does  not  affect  the  power  or 
jurisdiction  of  the  Interstate  Commerce  Commission  nor  confer 
upon  the  Shipping  Board  concurrent  power  or  jurisdiction.  The 
Shipping  Board  is  given  power  to  regulate  the  port-to-port  traf- 
fic of  steamship  lines  both  in  the  interstate  and  foreign  trades, 
while  the  Interstate  Commerce  Commission  has  power  tq_jegTi- 
late  such  traffic  as  is  handled  partly  by  rail  and  partly  by  water 
in  interstate  commerce,  but  has  no  direct  jurisdiction  over  steam- 
ship lines  in  the  overseas  foreign  trade  either  as  regards  their 
port-to-port  or  their  rail-ocean  traffic.  The  functions  of  the  two 
administrative  bodies,  however,  and  their  respective  fields  of 
action  are  closely  related.* 

The    Shipping  Act   of    1916  prohibits   "common    carriers   by 

'Dispute  has  arisen  as  to  the  efifect  that  proposed  railroad  regulation 
bills  now  before  Congress  would  have  upon  the  jurisdictions  of  the  Ship- 
ping Board  and  Interstate  Commerce  Commission  over  transportation 
by  water  in  interstate  commerce. 


260       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

water"  in  foreign  commerce  and  in  interstate  commerce  on  the 
high  seas  or  the  Great  Lakes  on  "regular  routes  from  port  to 
port"  and  also  concerns  engaged  in  the  business  of  forwarding 
or  in  furnishing  wharfage,  dock,  warehouse  or  other  terminal 
facilities  in  connection  with  such  carriers,  from  giving  any  undue 
or  unreasonable  preference  or  advantages  to  a  particular  person, 
locality  or  description  of  traffic.  It  prohibits  them  from  trans- 
porting the  property  for  any  person  at  less  than  their  regular 
rates  by  means  of  false  billing,  classification,  weighing  or  weight 
reports  or  by  other  unjust  or  unfair  device ;  and  from  in  any 
way  inducing  marine  insurance  companies  or  underwriters  to 
discriminate  against  competing  carriers.  It  similarly  prohibits 
them  from  disclosing  to  any  persons  other  than  the  shipper  or 
consignee,  except  with  their  consent,  any  information  regarding 
their  cargoes  that  may  be  used  to  their  detriment. 

The  carriers  and  other  concerns  mentioned  in  the  preceding 
paragraph  are  required  to  file  with  the  Shipping  Board  a  true 
copy  or  memorandum  of  every  agreement  regarding  rates  or 
fares,  special  accommodations,  privileges  or  advantages,  the 
control  of  competition,  the  pooling  of  traffic  or  earnings,  the 
control  of  sailings  by  the  allotment  of  ports  or  otherwise,  the 
limitation  of  freight  or  passenger  traffic,  or  any  other  exclusive, 
preferential  or  cooperative  arrangement.  The  Board  is  given 
power  to  "disapprove,  cancel  or  modify  any  ocean  conference 
agreement  which  it  finds  to  be  unfair  as  between  carriers,  ship- 
pers, exporters,  importers,  or  ports,  or  between  exporters  from 
the  United  States  and  their  foreign  competitors,  or  to  operate 
to  the  detriment  of  the  commerce  of  the  United  States,  or  to 
be  in  violation  of  this  Act."  When,  however,  a  conference  agree- 
ment is  approved  by  the  Board  and  is  lawful  under  the  Shipping 
Act  it  is  excepted  from  the  provisions  of  the  federal  anti-trust 
laws.  The  purpose  of  Congress  was  to  avoid  the  disadvantages 
of  ocean  conferences  but  to  retain  their  advantages. 

Certain  of  the  disadvantages  that  have  at  times  been  incident 
to  ocean  conferences  are  specifically  prohibited  in  the  Act.  Com- 
mon carriers  in  interstate  or  foreign  commerce  may  not  pay  de- 
ferred rebates,  use  fighting  ships,  or  retaliate  against  a  shipper 
by  refusing  or  threatening  to  refuse  available  space  accommoda- 
tions, or  by  resorting  to  other  unfair  methods  because  he  has 
patronized  other  carriers  or  for  other  reasons.     Nor  may  they 


GOVERNMENT  REGULATION  OF  OCEAN  RATES  261 

make  unfair  contracts  with  a  shipper  on  the  basis  of  the  volume 
of  freight  offered,  or  unjustly  discriminate  against  any  shipper 
in  the  matter  of  space  accommodations,  the  loading  and  landing 
of  cargo  in  proper  condition,  or  the  settlement  of  claims. 

Other  regulatory  provisions  of  the  Shipping  Act  of  1916  draw 
a  distinction  between  interstate  and  foreign  shipping.  Common 
carriers  by  water  operating  on  regular  routes  in  the  coastwise 
or  Great  Lakes  trades  are  required  to  establish  and  observe  just 
and  reasonable  rates,  fares,  charges,  classifications,  tariffs,  regu- 
lations and  practices  throughout  their  entire  port-to-port  busi- 
ness. They  are,  moreover,  obliged  to  file  with  the  Board  and 
keep  open  to  public  inspection,  tariffs  showing  their  maximum 
rates,  fares  and  other  charges ;  and  they  may  not  charge  more 
than  the  charges  so  filed  without  the  approval  of  the  Board  and 
after  ten  days'  notice  unless  the  Board  for  good  cause  waives 
such  notice.  If  the  Board  finds  any  rate,  fare  or  other  charge, 
or  any  classification,  tariff,  regulation  or  practice  to  be  unjust 
or  unreasonable,  it  may  prescribe  and  substitute  in  place  of  it 
"a  just  and  reasonable  maximum  rate,  fare  or  charge,  or  a  just 
and  reasonable  classification,  tariff,  regulation,  or  practice."  If 
a  carrier  by  water  in  interstate  commerce  reduces  its  freight 
rates  at  competitive  points  below  a  fair  and  remunerative  basis 
with  the  purpose  of  driving  out  or  injuring  a  competitive  coast- 
wise or  Great  Lakes  carrier,  it  may  not  again  increase  such 
freight  rates  unless  the  Board  after  holding  hearings  finds  the 
increase  to  be  justified  by  changed  conditions  other  than  the 
elimination  of  competition. 

In  the  foreign  trade,  on  the  contrary,  the  Shipping  Board 
under  the  Act  of  1916  can  prescribe  rates  only  on  the  ground  of 
unjust  discrimination,  and  the  steamship  lines  are  not  required 
to  systematically  file  their  tariffs,  or  give  a  ten  days'  notice  be- 
fore advancing  their  rates.  The  Act,  however,  prohibits  charges 
that  are  "unjustly  discriminatory  between  shippers  or  ports,  or 
unjustly  prejudicial  to  exporters  of  the  United  States  as  com- 
pared with  their  foreign  competitors,"  and  it  authorizes  the 
Board  to  correct  such  unjust  discrimination  or  prejudice.  It  also 
requires  steamship  lines,  forwarders,  and  concerns  engaged  in 
providing  wharfage,  dock,  warehouse  or  other  terminal  facili- 
ties in  the  foreign  trade  to  establish  and  observe  "just  and  reason- 
able regulations  and  practices  relating  to  or  connected  with  the 


262       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

receiving,  handling,  storing  or  delivering  property,"  and  em- 
powers the  Board  to  prescribe  a  just  and  reasonable  regulation 
or  practice  for  any  found  to  be  unjust  or  unreasonable.  "Cargo 
boats  commonly  called  ocean  tramps"  are  specifically  exempted 
from  these  provisions  which  apply  in  f(3reign  commerce. 

In  enforcing  the  Act  of  1916  and  exercising  its  powers  the 
Shipping  Board  may  act  either  on  its  own  initiative  or  on  sworn 
complaints,  and  it  may  subpoena  witnesses  and  compel  the  pro- 
duction of  books,  documents  or  other  evidence.  Its  orders,  made 
after  holding  hearings,  may  with  the  exception  of  those  calling 
for  the  payment  of  money,  be  enforced  by  obtaining  a  writ  of 
injunction  or  other  process  from  a  federal  district  court.  Or- 
ders involving  the  payment  of  money  and  reparation  awards 
may  be  enforced  by  filing  suits  or  petitions  in  a  federal  district 
court  or  in  any  other  court  specified  in  the  Act.  The  Board's 
rate  orders  are  of  course  subject  to  review  by  the  federal  courts 
in  the  same  way  that  those  of  the  Interstate  Commerce  Com- 
mission are  reviewable,  and  as  in  the  latter  case  the  courts  will 
probably  limit  themselves  to  a  consideration  of  questions  of  con- 
stitutionality and  law. 

The  Act  of  1916  carries  severe  penalties  for  violations  of  the 
Act.  A  general  money  penalty  of  $5,000  is  provided  for  the 
violation  of  sections  not  embodying  different  penalties.  If  the 
owner  or  master  of  a  vessel  laden  with  merchandise  refuses  to 
accept  freight  destined  to  the  ports  for  which  the  vessel  is  bound, 
although  there  is  available  space  and  the  freight  is  in  proper 
condition,  contains  no  merchandise  for  which  the  vessel  is  not 
adapted  and  the  proper  freight  charges  are  oflfered,  the  Secre- 
tary of  the  Treasuiy  is  authorized  to  refuse  clearance. 

The  Shipping  Act  of  1916  is  important  also  because  of  the 
ship  purchase  plan  embodied  in  it.  It  authorizes  the  Shipping 
Board  to  purchase,  lease,  charter  or  have  vessels  constructed 
and  to  sell,  charter  or  lease  such  vessels  upon  approval  of  the 
President  and  also  such  as  may  be  transferred  to  it  from  the 
Army  or  Navy.  It  moreover  authorizes  the  Board  to  organize 
one  or  more  corporations  for  the  purchase,  construction,  equip- 
ment, lease,  charter,  maintenance  and  operation  of  merchant  ves- 
sels. The  Emergency  Fleet  Corporation  was  formed  under  this 
provision.  The  original  fund  made  available  was  limited  to 
$50,000,000,  but  this  was  vastly  increased  after  the  United  States 


GOVERNMENT  REGULATION  OF  OCEAN  RATES    263 

entered  the  war  and  an  acute  tonnage  emergency  arose.  The  Act 
provides  that  the  operation  of  vessels  by  any  such  corporation 
in  which  the  United  States  is  then  a  stockholder  shall  discontinue 
within  five  years  after  the  conclusion  of  the  war  is  proclaimed 
by  the  President,  and  that  the  corporation  shall  then  be  dissolved. 
The  Shipping  Board  to  which  the  corporation's  vessels  and  other 
property  shall  revert,  "may  sell,  lease  or  charter  such  vessels  as 
provided  in  section  seven  and  shall  dispose  of  the  property 
other  than  vessels  on  the  best  available  terms." 


War  Control  of  Ocean  Shipping 

Although  the  Government  ship  purchase  plan  inaugurated  in 
the  Shipping  Act  of  1916  was  the  immediate  result  of  the  ship- 
ping emergency  which  had  developed  since  the  beginning  of 
the  war  in  Europe,  the  regulatory  provisions  of  the  Act  are 
only  in  part  the  result  of  war  conditions.  They  provide  for 
regulation  which  will  continue  after  war  conditions  disappear 
unless  Congress  should  see  fit  to  legislate  otherwise.  War  con- 
trol of  ocean  shipping  in  the  United  States  was  not  extensive 
until  after  the  Government  declared  a  state  of  war  to  exist  be- 
tween the  United  States  and  Germany.  The  control  then  ex- 
ercised far  exceeded  the  permanent  regulation  embodied  in  the 
shipping  act  of  1916. 

In  September,  1917,  the  Shipping  Board  announced  its  in- 
tention to  requisition  all  American  vessels  above  2,500  tons 
dead-weight  capacity.  It  formulated  standardized  requisition 
charters  and  controlled  the  operation  of  vessels  under  the  bare- 
boat or  time  charter  forms  referred  to  in  Chapter  XII.  The 
War  and  Navy  Departments  had,  even  before  this  action  was 
taken  by  the  Shipping  Board,  commandeered  vessels  for  their 
own  use,  and  the  War  Trade  Board  through  its  power  to  issue 
or  withhold  bunker  coal  licenses  had  been  exercising  a  measure 
of  control  over  vessel  movements.  The  Shipping  Board  also 
chartered  many  foreign  neutral  vessels. 

One  reason  for  requisitioning  and  chartering  vessels  was  to 
control  them  so  that  the  available  tonnage  would  be  used  where 
most  needed.  TJhe  other  reason  was  to  control  rates.  The 
Shipping   Board  began  to  prescribe   charter  rates    for  vessels 


264       OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

under  its  control  in  September  and  later  it  made  the  following 
announcement  regarding  vessels  under  2,500  tons  dead-weight 
capacity:  "There  are  a  number  of  small  vessels  which  are  not 
in  the  requisition  size  that  have  been  making  these  (trans- At- 
lantic) trips  under  extortionate  rates,  and  after  consideration 
by  the  Ship  Control  Committee  it  has  been  decided  that,  after 
February  20,  1918,  no  American  steamship  under  2,500  tons 
dead-weight  will  be  permitted  to  clear  for  a  trans-Atlantic  voy- 
age or  to  engage  in  other  long  voyage  trades." 

On  July  18,  1918,  moreover,  Congress  enacted  special  war 
legislation  specifically  conferring  upon  the  President  complete 
power  to  control  the  rates,  terms,  conditions  at  which  American 
vessels  are  chartered  and  at  which  citizens  of  the  United  States 
charter  foreign  vessels.  The  Act  also  empowered  the  President 
to  prescribe  reasonable  freight  rates,  terms  and  conditions  gov- 
erning the  transportation  of  cargoes  on  vessels  of  the  United 
States.  These  powers  over  charter  rates  and  ocean  freight 
rates  were  exercised  by  the  President  through  the  Shipping 
Board.  The  operation  and  management  of  vessels,  directly 
and  through  private  operators  and  managers  is  conducted 
through  the  Division  of  Operations  of  the  Emergency  Fleet 
Corporation. 

Other  regulatory  steps  taken  by  the  Shipping  Board  included 
the  improvement  and  control  of  coal  handling  facilities;  the 
control  of  tugs  and  barges;  and  the  sending  of  men  to  various 
ports  to  speed  up  the  handling  of  vessels.  War  port  boards  were 
also  created  in  the  fall  of  1917  to  develop  and  control  port  facili- 
ties, the  New  York  board  consisting  of  representatives  of  the 
Shipping  Board  and  the  War  and  Navy  Departments.  In  order 
to  reduce  the  volume  of  foreign  trade  and  in  that  way  release 
ocean  tonnage  the  Board  created  a  Division  of  Planning  and 
Statistics  and  sent  representatives  to  various  foreign  countries. 

Other  branches  of  the  Government  also  exercised  regulatory 
functions  affecting  ocean  shipping  during  the  war.  The  Division 
of  Planning  and  Statistics  cooperated  with  the  War  Trade  Board 
in  determining  how  the  volume  of  imports  and  exports  could 
best  be  reduced.  The  War  Trade  Board  having  the  power  to 
withhold  licenses  and  restrict  foreign  trade  acted  not  only  with 
a  view  to  preventing  American  products  from  reaching  the  enemy 
and  to  conserving  food  stuffs  and  Qther  products  for  the  United 


GOVERNMENT  REGULATION  OF  OCEAN  RATES  265 

States  and  the  Allied  countries;  it  also  restricted  trade  so  as 
to  release  tonnage  and  facilitate  its  control  and  effective  use. 
As  was  previously  mentioned,  this  board  likewise  exercised  a 
direct  control  over  the  movement  of  vessels  through  the  issue  or 
refusal  of  bunker  coal  licenses.  The  State  and  Commerce  De- 
partments cooperated  in  the  work  of  licensing  imports  and  re- 
ducing their  volume  by  sending  commercial  attaches  abroad, 
and  various  departments  encouraged  the  home  production  of 
products  which  were  formerly  imported  from  abroad.  The 
Food  Administration  in  cooperation  with  the  War  Trade  Board 
controlled  the  exportation  of  grain  and  other  food  stuffs. 

The  Railroad  Administration  controlled  the  movement  of  ex- 
port freight  from  the  interior  to  the  ports  either  directly,  or  in 
the  case  of  New  York,  through  the  General  Operating  Committee 
of  the  eastern  railroads  referred  to  in  Chapter  XI.  It  took  over 
the  important  Atlantic  and  Gulf  Coastwise  lines,  and  various 
inland  and  coastwise  waterways.  It  established  a  North  Atlantic 
Ports  Freight  Traffic  Committee  with  its  main  office  at  New 
York  and  divisions  at  Baltimore  and  Philadelphia  to  control  the 
carload  domestic  freight,  except  freight  consigned  to  an  officer 
of  the  U.  S.  Government,  for  coastwise  vessels ;  to  make  freight 
embargoes  effective  when  issued  by  the  lines  serving  these  ports, 
and  to  issue  railroad  shipping  permits  as  exceptions  to  embargoes 
when  conditions  warrant. 

A  joint  "exports  control  committee"  consisting  of  representa- 
tives of  the  Railroad  Administration,  the  Shipping  Board,  the 
War  and  Navy  Departments,  and  the  traffic  executives  controlling 
Allied  traffic  was  also  created.  This  committee  was  formed  to 
determine  the  probable  amounts  of  export  and  domestic  freight 
that  needed  to  be  handled  at  the  ports,  how  war  freight  could 
best  be  routed  to  the  seaboard,  the  ports  to  which  specified  over- 
seas freight  should  be  transported,  and  the  distribution  of  the 
total  volume  of  all  export  freight  between  the  various  ports  so 
as  to  facilitate  its  handling  and  avoid  congestion. 

Two  "shipping  control  committees"  to  unify  the  control  of 
American  vessels  and  virtually  pool  thgra  with  the  Allied  coun- 
tries were  appointed  when  the  confusion  resulting  from  lack 
of  close  cooperation  between  the  Shipping  Board,  the  Naval 
Transport  and  the  Army  Transport  services,  which  were  operat- 
ing vessels  independently,  became  apparent,  and  when  it  became 


266      OCEAN  STEAMSHIP  TRAFFIC  MANAGEMENT 

clear  that  cooperation  with  the  Allies  in  the  use  of  ocean  ton- 
nage was  desirable.  One  of  the  committees  consisted  of  three 
American  steamship  men,  and  the  other  committee  which 
brought  about  cooperation  with  the  Allies  consisted  of  two  of 
the  members  of  the  American  committee  and  a  representative  of 
the  British  Admiralty.  These  committees  were  given  power  to 
divert  incoming  vessels  away  from  congested  ports  to  what- 
ever ports  were  at  a  particular  time  best  able  to  receive  them, 
and  to  select  the  ports  from  which  outbound  vessels  were  to 
clear. 

This  war  control  of  ocean  shipping  is  mentioned  because 
some  of  it  is  still  in  effect  and  because  it  may  have  an  influence 
upon  regulation  in  the  future.  Most  of  it  seems,  however,  to  be 
of  a  temporary  character  and  destined  to  disappear  or  to  be 
greatly  modified  as  normal  conditions  approach.  Many  of  the 
restrictions  on  foreign  trade  and  ocean  cargoes,  for  example, 
have  already  been  raised  and  the  stringent  powers  over  ship- 
ping granted  to  the  President  in  the  Act  of  July  18,  1918,  will 
come  to  an  end  when  the  treaty  of  peace  is  proclaimed,  or  within 
nine  months  from  such  date.  The  traffic  department  of  steam- 
ship lines  will,  however,  continue  to  be  concerned  with  the  cus- 
toms and  navigation  laws,  with  the  passenger  act  and  immigra- 
tion laws,  the  Interstate  Commerce  and  Panama  Canal  acts,  with 
the  Shipping  Act  of  1916,  and  with  whatever  remnants  of  war 
control  may  co.ntinue  or  new  legislation  b?  enacted. 


INDEX 


Agreements,  preferential,  dj. 

American-Asiatic  pool,   64. 

American  Express  Company, 
foreign   tariffs   of,   81. 

Argentine  certificate  of  origin, 
164,  165. 

Arrival  notice  and  freight  bill, 
109. 

Associations  of  steamship  own- 
ers, 16. 

Baggage  department,  43. 
Baltic  pool  agreement,   61. 
Berth    cargo    rates :    competition 

in,    237;    distinction    between, 

and      regular      cargo      rates, 

236. 
Bill   of  lading   clerks,  duties  of, 

24. 
Bills  of  lading,  ocean.  See  Ocean 

bills  of  lading. 
Board     of     General     Appraisers, 

158. 

Bond  to  produce  complete  mani- 
fest and  export  declarations, 
129. 

Booking  records,  87-88. 

Branch  seaboard  offices,  26. 

Brazilian  consular  invoice, 
161. 

British   Blue  Book   rates,   244. 

Brokerage,   rate  of,   79. 

Bunker  fuel,  stores  and  supplies, 
application  and  license  for, 
132. 

Cabin     department,     subdivisions 

of,  35-37- 
Calcutta-Pacific   pool,   64. 


Canadian  invoice  of  goods  sold 
by  exporter  prior  to  shipment, 
167,  168. 

Cargo:  affidavit  and  agreement 
governing  disposition  of,  131 ; 
application  and  permit  to  al- 
low unpermitted,  to  remain  up- 
on wharf,  143;  general  permit 
to  lade  or  unlade,  142;  pre- 
liminary application  to  lade  or 
unlade,    140. 

Cargo  contracts  and  booking  rec- 
ords, 87-88. 

Cargo  vessels,  operating  as 
tramps,  12. 

Carrier's  manifest  of  merchan- 
dise in  bond,   158. 

Certificate  of  inspection,  117. 

Certificate  of  registry,   115,   116. 

Certificate  of  origin,   162,   164. 

Certificates  of  purity,  150. 

Charter  parties :  gross  form,  202- 
210;  net  form,  210-216;  time, 
185-201 ;  trip  or  voyage,  202- 
225. 

Charter   rate-making,    242,    243. 

Charter  rates:  how  based,  233; 
prescribed  during  war  by  Ship- 
ping Board,  262. 

Charter  traffic:  conferences  and 
pools   difficult  in,   58. 

Charters :  during  war  control  of 
U.  S,  shipping,  261 ;  types  of, 
in  ocean  shipping,  185. 

Chartered  service,  10-13;  types 
of,  44. 

Chartered  steamship  services,  or- 
ganization and  administration 
of,  44-54 


267 


268 


INDEX 


Chartered  vessels,  cooperation 
among,  56. 

Chartering  department,  8. 

Clearance  clerks,  25. 

Clearance  of  vessel  to  a  foreign 
port,  130,   135. 

Coal  charter  party:  Welsh  form, 
222,  223. 

Coastwise  lines:  control  of,  by 
Railroad    Administration,    263. 

Coastwise  trade :  not  open  to  for- 
eign vessels,  57;  regulations  of 
Shipping  Act  concerning,  259. 

Combination  lines,   4. 

Commercial  invoices,   166. 

Commercial  time  charters,  con- 
ditions of,  190-194. 

Competition:  a  dominating 
factor  in  charter  rates,  242; 
by  "fighting  ships,"  66;  control 
of,  through  conference  agree- 
ments, 60;  influence  of,  238, 
239;  in  freight  forwarding 
business,  82-83;  in  making  of 
passenger  fares,  250;  in  ocean 
passenger  business,  251 ;  in 
rate  making,  236;  methods  of 
controlling,  between  confer- 
ence lines,  65,  and  non-confer- 
ence lines,  66;  rates,  69. 

Comptroller's    department,    9. 

Conference  agreements  in  char- 
tered ocean  service:  56;  dis- 
rupted by  European  War,  58; 
provisions  of  Shipping  Act 
regarding,  258, 

Conferences:  advantages  of,  68; 
complaints  against,  ()"];  im- 
portance of,  reduced  during 
war,  235 ;  ocean  line,  58. 

Conferences,  pools,  and  rate  and 
traffic  agreements  of  ocean 
carriers,  56-70. 

Construction  department,  8, 

Consular  documents,  special,  170. 

Consular  invoice :  provisions  of, 
151-156;  regulations  governing, 
160-162, 


Consular  officers,  certify  bills  of 
lading,    160. 

Cooperation  among  chartered 
vessels,  56;  in  ocean  line  busi- 
ness, 57. 

Court  of  Customs  Appeals,   158. 

Currency   certificate,    156. 

Custom  house  brokers:  fee  paid 
to,  158;  shipping  documents 
used  by,   157,   158. 

Customs  attorneys,   159. 

Customs    permit,    108. 

Customs  regulations,  code  of, 
156. 

Deferred  rebate  system,  66. 

Delivery  order,  109. 

Delivery  receipt,  ill. 

Demurrage  charges,  209. 

Department  of  operations,  8. 

Differential  rates,  62. 

Dock  receipts,  91-93. 

Dock  sheets,  94. 

Documents  required  on  clearing 

a  vessel  in  the  foreign  trade, 

118-130. 
Documents  required  on  entering 

a  vessel  in  foreign  trade,  130- 

144. 
Drawback  privilege,   150. 

Ellis  Island,  immigrant  agent  at, 
40. 

Emergency  Fleet  Corporation, 
formation  of,  260. 

Engineer   department,   8. 

Export  bill  of  lading,  103-104. 

Export  cargoes,  method  of  hand- 
ling,  at   New  York,   175. 

Export  declaration,   146,   147. 

Export  licenses,  during  the  war, 
98,  150. 

Export  meat  inspection  cer- 
tificate, 149. 

Export  rates  from  interior 
points,  248. 

Export  trade  of  the  United 
States,     Shipping     Documents 


INDEX 


269 


Required  by  Foreign  Govern- 
ments in,  160-170. 

Exporters:  disadvantages  of 
American,  239;  official  docu- 
ments   required   of,    146-151. 

Exports,  special  inspection  cer- 
tificates needed  for,  149. 

Express  business :  difference  be- 
tween   foreign    and    domestic, 

77- 

Express  companies,  internation- 
al business  of,  73,  74,  75. 

Express  lines,  4. 

Fares,  see  Ocean  Passenger 
fares. 

"Fighting  ships,"  (>^. 

Final  notice  of  arrival,  109. 

Foreign  Governments,  Shipping 
Documents  Required  by,  in 
United  States  Export  Trade, 
160-170. 

Foreign  trade:  activity  in,  by, 
freight  forwarders,  74;  author- 
ity of  Shipping  Board  regard- 
ing rates  in,  259;  combination 
rates,  in,  249;  competition  in, 
248;  documents  required  on 
clearing  a  vessel  in  the,  118- 
130;  documents  required  on 
entering  a  vessel  in,  130-144; 
foreign  consular  requirements 
in,  loi ;  increasing  interest  in, 
248;  report  of  entrance  or 
clearance  of  vessels  in,  130; 
shipments,  special  rates  for, 
247. 

Forwarder's  bill  of  lading:  178, 
179;  provisions  of,  181. 

Forwarder's    expense    bill,     182, 

183- 

Forwarder's  lighterage  instruc- 
tions, 176. 

Forwarder's  shipping  instruc- 
tions,  173,   174. 

Forwarder's  trucking  instruc- 
tions, 177. 

Forwarder's  waybills.  181,  182. 


Freight  agencies,  26-28. 

Freight  agents,  duties  of,  27. 

Freight  agreements  in  North 
Atlantic-European  trade,  chart 
of,  opp.  62. 

Freight  brokerage  and  forward- 
ing charges,  79,  80. 

Freight  tclassification :  229-232; 
economic  value  of,  71. 

Freight  contracts,  87. 

Freight  department :  connection 
of,  with  other  departments, 
30;  inbound,  functions  of,  28, 
29 ;  outbound,  clerical  and  so- 
liciting staff  in,  23-24. 

Freight    engagement    record,    88. 

Freight  forwarder:  branch  of- 
fices of,  75;  business  organi- 
zation of,  74;  chart  of,  76;  de- 
partments in  office  of,  79;  for- 
^ig'^j  75;  forwarding  staff  of, 
78 ;  main  profit  of,  81 ;  nature 
of  services  of,  71 ;  obtaining 
of  rates  by,  249;  take  entire 
charge  of  export  shipments, 
^2;  transaction,  a  typical  one 
described,   171-184. 

Freight  forwarding  business : 
competition  in,  82;  shipping 
documents  used  in  ocean,  171- 
184. 

Freight  forwarding  charges,  79- 
80. 

Freight    forwarding,    ocean,    71- 

79- 

Freight    offices    abroad,    27. 

Freight  rate  agreements.  North 
Atlantic-European,    62. 

Freight  rates,  see  Rates. 

Freight  traffic  department :  chart 
of  organization  of,  19;  func- 
tions of,  18;  organization  of, 
18-31. 

Freight  traffic  manager :  duties 
of,  20,  21 ;  outbound,  duties  of 
22,  23. 

General  cargo  gross  form  chart- 
er party,  203,  204. 


270 


INDEX 


General  cargo  net  form  charter 
party,  212,  213. 

General  order  issued  to  customs 
inspectors,   145. 

General  permit  to  lade  or  un- 
lade,  123. 

General    steamship   operator,   48. 

Government  rate-making,  243- 
245;  Great  Britain's  example 
followed  in,  244. 

Government  regulation  of  ocean 
rates  and  services,  252-264. 

Government  time  charters  dur- 
ing the  war,  provisions  of, 
197-201. 

Great  Lakes  trade,  regulations 
of     Shipping     Act     regarding, 

259- 
Gross   form  charter  parties,  202. 

Gross    form    coal    charter    party, 

205-206. 

Health  certificates,  169. 

Immigrant  passenger  laws,  253- 

255- 
Immigrant   traffic,   allocation   of, 

40. 

Immigration  Act  of  1917,  provi- 
sions of,  254. 

Immigrants:  penalty  for  viola- 
tion of  laws  regarding,  254; 
U.  S.  regulations  regarding, 
254,  255. 

Import  duties,  relation  of  certifi- 
cates of  origin  to,   164. 

Importer's  declaration  and  oath, 

157. 

Importers,  official  documents  re- 
quired of,  151-156. 

Industrial  bulk  carriers:  13-16; 
advantages   of,    14. 

Inland  rates  to  and  from  ship- 
side,  246-248;  different  rates 
according  to  routes,  247. 

Insurance  department,   10. 

Interstate  Commerce  Act,  appli- 


cation of,  to  steamship  traffic, 

255- 

Lighterage  charges,  209. 
Lighterage   or  trucking   instruc- 
tions, 175. 
Line  services,  nature  of,  5. 
Line  traffic,  nature  of,  5. 
List  of  sea  stores,  137. 

Main  office  booking  clerks,  35. 
Main  office  landing  clerks,  36. 
Managing    owner,    operation    of, 

46,  47. 
Manifest  clerks,  duties  of,  25, 
Marine   or  deck  department,  8. 
Marine  insurance,  51. 
Master's    extension    of     protest, 

112,   114. 
Master's    oath    under    Seamen's 

Act,  122,  123. 
Measurement     rules,     by    whom 

applied,  115. 
Mediterranean  westbound  freight 

traffic    agreement,    administra- 
tion of,  59. 
Minimum     rate     agreements     in 

North  Atlantic  trade,  61. 
Modified  gross  and  net  charters, 

217-225. 
Money  pool,  described,  62,  63. 

Navigation  laws,  application  of, 
to  government  regulation  of 
ocean  rates  and  services,  252. 

Net  form  charters,  210-216. 

New  York  net  grain  charter 
party,  pre-war  conditions,  213, 
214;   war   conditions,  215,  216. 

New  York-West  African  pool, 
64. 

Nitrate  charter  party,  pre-war 
conditions,  218,  219;  war  con- 
ditions, 220,  221. 

Non-dumping  or  value  certifi- 
cates,  166,  169. 

Nord-Atlantischer    Dampfer    Li- 


INDEX 


271 


nien  Verband  conference,  60, 
61. 

North  Atlantic-European  freight 
rate  agreements,  62. 

North  Atlantic  passenger  agree- 
ments, 250. 

Note  of  protest,  112,  113. 


Oath  of  master:  of  steam  vessel 
clearing  without  passengers, 
125 ;  on  entering  American 
vessels  from  foreign  port, 
136;  on  entering  foreign  ves- 
sels from  foreign  port,  137. 

Ocean  bills  of  lading:  98-104; 
export,  103-104;  forwarder's, 
178;  order,  100;  uniform,  not 
yet  adopted,  loi,  104;  varia- 
tions in  provisions  of,   102. 

Ocean  conferences,  see  Confer- 
ences. 

Ocean  freight  classifications, 
229-232. 

Ocean  freight  forwarding  busi- 
ness, shipping  documents  used 
in,  171-184. 

Ocean  line  conferences,  organ- 
ization of,  58. 

Ocean  line  rate-making,  235- 
251 ;  see  also  Rates. 

Ocean  passenger  fares:  250, 
251;  competitive  forces  affect- 
ing, 250;  fluctuation  in,  251; 
principles  governing  making 
of,  250. 

Ocean  rate-making,  246-251. 

Ocean  rate-making  powers  dur- 
ing European  war,  243. 

Ocean  rate  quotations,  233,  234. 

Ocean  rates:  see  Rates. 

Ocean  services  and  traffic  agen- 
cies, types  of,  3-17. 

Ocean  shipping,  war  control  of, 
261-263. 

Ocean  tariffs:  applicable  only  to 
regular  cargoes  of  steamship 
lines,     232;     classification     of 


contents  of,  231;  publication 
of,  230;  shipping  rules  in,  231. 

Ocean  transportation  services, 
types  of,  3. 

"On  the  berth,"  12,  45,  50. 

Overseas  trade,  not  under  juris- 
diction of  Interstate  Com- 
merce Commission,  256. 


Package    freight,    reduced    rates 

on,  73. 
Packages,  general  order  to  send 

unpermitted,     from    wharf    to 

public  store,  144. 
Panama  Canal  Act  of  1912,  255, 

256,  257.  _ 
Parcel  receipts,   104,  105. 
Passenger  act  of  1882,  253. 
Passenger  agents,  39. 
Passenger   agreements   in   North 

Atlantic  trade,  chart  of,  60. 
Passenger  and  immigration  laws, 

253-255- 
Passenger  carrying  lines:  special 
function    of,    4;    variation    of, 

3- 

Passenger  de|partment,  branch 
offices  of,  38. 

Passenger  list,  138. 

Passenger  services,  classification 
of,  34- 

Passenger  traffic :  cooperation 
of,  with  other  departments,  41 ; 
status  of,  32. 

Passenger  traffic  department,  or- 
ganization of,  32-43. 

Passenger  traffic  manager,  du- 
ties of,  33-35. 

Permit  clerks,  25. 

Permit  sheet,  92. 

"Pixpinus"   charter,  224. 

Pooling  of  steerage  traffic,  61. 

Pools,  conferences  and  rate  and 
traffic  agreements  of  ocean 
carriers,  56-70. 

Pools,  ocean  line:  American- 
Asiatic,    64;    Baltic,    63,    64; 


272 


INDEX 


Calcutta-Pacific,  64;  discus- 
sion of,  62;  Mediterranean 
westbound  freight,  64;  money, 
62;  New  York-West  African, 
64;  traffic,  62. 

Port  sanitary  statement,   126. 

Port-to-port  business,  256. 

Ports,  administration  of,  253. 

Prima^^e,  232, 

Private  carriers,  13-16. 

Publicity  department,  37,  4^. 

Purser,  41. 

Radio  apparatus  when  clearing, 
certificate  of,   124. 

Radio  declaration  when  enter- 
ing, 138,   139- 

Rate  and  Traffic  Agreements, 
Pools  and  Conferences  in,  of 
Ocean  Carriers,  56-70. 

Rate  competition,  conference 
control  over,  69. 

Rate-making :  charter,  242-243 ; 
government,  243-245;  see  also 
Ocean  rate-making. 

Rates:  difference  in,  on  c.l.  and 
l.c.l.  shipments,  73;  differen- 
tial, 62;  export  from  interior 
points,  248;  government  regu- 
lation of,  257-261 ;  increase  of, 
during  European  war,  236, 
241 ;  inland,  to  and  from  ship- 
side,  246-248;  making  of,  20; 
obtaining  of  reduced,  through 
freight  forwarders,  73;  ocean 
line,  235-251 ;  prescribing  of 
charter  by  U.  S.  Shipping 
Board,  262;  stability  of,  re- 
duces speculative  uncertainty, 
68;  through  rail-ocean,  249, 
250;  various  factors  in  mak- 
ing of,  239-241. 

Regular  lines:  function  of,  4; 
traffic  conditions  of,  4. 

Request  for  immediate  clear- 
ance, 128. 

Sailing    Ship    Owners'    Interna- 


tional  Union,   organization  of, 

56. 
Savannah     lump     sum     charter, 

223. 
Ship     Brokerage,     Organization, 

and     Administration     of,     49- 

55- 

Ship  brokerage  business,  chart 
of  organization  of,  52. 

Ship  brokerage  charges  and 
profits,  54,  55. 

Ship  brokers :  also  sell  vessels, 
50;  correspondents  of,  in  for- 
eign ports,  53 ;  "loading  Brok- 
er," 49;  main  work  of,  49; 
may  become  tramp  operator, 
47;     members     of     exchanges, 

53- 
Shipper,    service    to,    by    freight 

forwarders,  72,  73,  74. 
Shippers :  benefit  of  conferences 

to,  68;  contracts  with,  67. 
Shipper's       export       declaration, 

147,  148. 
Shipping     Act     of      September, 

1916:      importance     of,     260; 

penalties    prescribed    in,    260; 

rebate    system   in,   66;   regula- 
tory   provisions     of,    257-260; 

ship-purchase     plan     embodied 

in,  260;  unfair  competition  in, 

67. 
Shipping  Articles,   118-121. 
Shipping    Board:    charter    party 

used  by,  200;  powers  of,  243, 

257-260. 
Shipping      control      committees, 

263. 
Shipping    documents,    loi,     106; 

custom     house     brokers     and, 

157,  158. 

Shipping  documents  required  by 
foreign  governments  in  United 
States  export  trade,  160-170; 
by  ocean  carriers,  87-114;  by 
the  United  States  Govern- 
ment, 1 15-159. 

Shipping     documents     used     in 


INDEX 


273 


ocean  freight  forwarding 
business,  171-184. 

Shipping  permits,  conditions  con- 
tained in,  88-91. 

Ship-purchase  plan  embodied  in 
U.  S.  Shipping  Act,  260. 

Shipping  Rings,  report  on,  58. 

Ship's  manifests,  105-108,   127. 

Ship's  register,   115. 

Steamship    agents,    activities    of, 

15- 

Steamship  business,  custom 
house  brokers  a  factor  in,  158. 

Steamship  companies,  provi- 
sions of  Panama  Canal  Act  re- 
garding ownership  of,  by  rail- 
road  companies,   257. 

Steamship  company,  business  or- 
ganization  of,   6,   7. 

Steamship  lines,   regular,   3. 

Steamship  owners'  associations 
in  Great  Britain,  57. 

Steamship  traffic  agencies,  15-16. 

Steamship  traffic  management : 
the  railroads  a  factor  in,  15; 
goverament  authorities,  and, 
17. 

Steerage  booking  clerks,  40. 

Steerage  department,  adminis- 
tration of,  39;  agents  of,  42. 

Steerage  landing  and  railroad 
booking  clerks,  40. 

Steerage  service,  affected  by  U. 
S.  Immigration  laws,  254. 

Steerage  traffic:  pooling  of,  34, 
61 ;  under  N.  D.  L.  V.  agree- 
ment, 62,  63. 

Stowage  plan,  94,  97. 

Supply  department,  38,  41. 

Tally  sheets,  94. 

Time  charter  parties,   185-201. 

Time  charter  party:  New  York 
Produce  Exchange  form,  194- 
196;  pre-war  conditions,  186- 
187;  war  conditions,  188,  189. 


Time  charters,  45;  government, 
197. 

Tourist  department,  37. 

Traffic:  apportionment  of,  among 
conference  lines,  65-66. 

Traffic  agencies  and  ocean  ser- 
vices types  of,  3-17. 

Traffic  pool,  62,  64;  differs  from 
traffic  a^eement,  65. 

Tramp  service,  10-13;  availabili- 
ty of,  22^. 

Tsamp  vessels :  characteristics 
of,  13;  disadvantage  of,  13; 
fleets  of,  46;  "on  the  berth," 
12;  operation  of,  in  line  ser- 
vice, 12;  operation  of,  46;  use 
of,  12;  withdrawal  of,  from 
tramp  service,  45. 

Transcontinental   tariffs,  248. 

Traveling  freight  agents,  26. 

Traveling  passenger  agents,  37. 

Treasurer's  department,  9. 

Trip  charter:  rate  paid  for,  206; 
provisions  of,  207-210. 

Trip  charters:  202-225;  many 
variations  in,  225. 

United  States  Steamboat  Inspec- 
tion   Service,    118. 

Vessel   bond,   141. 

Vessels  clearing  foreign  port, 
report  of  movement  and  lad- 
ing of,  134. 

Victualing  department,  8. 

Voyage  charters,  202-225;  three 
fundamental  classes  of,  202. 

War  control  of  ocean   shipping, 

261-263. 
War    port    boards,    creation    of, 

262. 
War    Trade    Board,    powers    of, 

262, 
Wharf  department,  8,  30,  31. 


UNIVERSITY  OF  CALIFORNIA   AT  LOS  ANGELES 


Jiki     k^      ^^.        THE  UNIVERSITY  LIBRARY 

*^  This  book  is  DUE  on  tlic  last  date  stamped  below 


.^^O^v 


DEC 


4  1956 


JAN- 9  1957 

^^'  31.1957 

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